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Mazon, IL | I worked for one of the major equipment manufacturers for 35 years. We did not have a pension plan. They offered us a 401k plan that they would match up to 8% through Fidelity. Fees were minimal. You don’t say how old your employees are but here are some final account values assuming 30 years of employment, $75k annual salary, and 4% return:
3% match - $196k balance
5% match - $420k balance
Put yourself in their shoes. What would you rather have?
There was a 3 year vesting period that if you left before then they got their contributions back.
Another nice feature was that you could borrow from your 401k with some restrictions. All principle and interest payments went back into your account. | |
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Setting up retirement plans for employees?
