There are seven absolutely fantastic 401(k) plan design elementsthat represent the perfect gift companies can give to theiremployees. Here they are:
1. Instant eligibility. Employers often putemployees “on probation” when it comes to receiving benefits. Thatmakes sense when there's a significant cost to the company (eitherout-of-pocket or via the accumulation of free-rider employees). Butis it necessary in cases where the employee pays for the cost ofthe benefit? Maybe put a hold on the point when matching kicks in,but let them start saving for retirement from the get-go.
2. Offering a Roth option. Sometimes, theimmediate tax deferral is worth less than the long-term taxdeferral. That's certainly the case for employees in low taxbrackets with decades of compounding returns ahead of them. This isa popular option with millennials.
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