Enhancing 401(k) Value and Participation: Taking the Automatic Approach

This is especially true in smaller companies and those of fairly recent vintage because 401(k)s are likely to be the only retirement program offered in these organizations. But, even in large and old-line businesses in which traditional defined benefit (DB) pension plans remain common, it’s important for employees to take responsibility for their retirement planning and save for retirement in order to achieve targeted income replacement levels. Because of the tax advantages of 401(k)s and the fact that many companies match employees’ contributions in these plans up to certain limits, 401(k) plans represent an especially powerful way to save for retirement. Corporate America’s ongoing shift in emphasis from DB to DC retirement plans Enhancing 401(k) Value and Participation Taking the Automatic Approach