Author: Gary V. Engelhardt Publisher: ISBN: Category : 401(k) plans Languages : en Pages : 96
Book Description
Employer matching of employee 401(k) contributions can provide a powerful incentive to save for retirement and is a key component in pension-plan design in the United States. Using detailed administrative contribution, earnings, and pension-plan data from the Health and Retirement Study, this analysis formulates a life-cycle-consistent econometric specification of 401(k) saving and estimates the determinants of saving accounting for non-linearities in the household budget set induced by matching. The participation estimates indicate that an increase in the match rate by 25 cents per dollar of employee contribution raises 401(k) participation by 3.75 to 6 percentage points, and the estimated elasticity of participation with respect to matching ranges from 0.02-0.07. The parametric and semi-parametric estimates for saving indicate that an increase in the match rate by 25 cents per dollar of employee contribution raises 401(k) saving by $400-$700 (in 1991 dollars). The estimated elasticity of 401(k) saving to matching is also small and ranges from 0.09-0.12 overall, with just under half of this effect on the intensive margin. Overall, the analysis reveals that matching is a rather poor policy instrument with which to raise retirement saving.
Author: Gary V. Engelhardt Publisher: ISBN: Category : Languages : en Pages : 80
Book Description
Employer matching of employee 401(k) contributions can provide a powerful incentive to save for retirement and is a key component in pension-plan design in the United States. Using detailed administrative contribution, earnings, and pension-plan data from the Health and Retirement Study, this analysis formulates a life-cycle-consistent econometric specification of 401(k) saving and estimates the determinants of saving accounting for non-linearities in the household budget set induced by matching. The participation estimates indicate that an increase in the match rate by 25 cents per dollar of employee contribution raises 401(k) participation by 3.75 to 6 percentage points, and the estimated elasticity of participation with respect to matching ranges from 0.02-0.07. The parametric and semi-parametric estimates for saving indicate that an increase in the match rate by 25 cents per dollar of employee contribution raises 401(k) saving by $400-$700 (in 1991 dollars). The estimated elasticity of 401(k) saving to matching is also small and ranges from 0.09-0.12 overall, with just under half of this effect on the intensive margin. Overall, the analysis reveals that matching is a rather poor policy instrument with which to raise retirement saving.
Author: Christopher R. Cunningham Publisher: ISBN: Category : Languages : en Pages :
Book Description
We use panel data from W-2 records for households in the Health and Retirement Study (HRS) to examine the responsiveness of 401(k) saving to taxation, employer matching, and lifecycle factors. The limit on the tax deductibility of IRA contributions enacted in the Tax Reform Act of 1986 appears to have raised 401(k) saving by 6 percent. Individuals eligible for employer matching contribute substantially more, but this result is not robust once job and firm characteristics are taken into account. Alternative pension coverage greatly reduces 401(k) saving, whereas the ability to direct the investment of funds is associated with higher saving.
Author: Christian D Rahaim Publisher: iUniverse ISBN: 0595336302 Category : Languages : en Pages : 218
Book Description
The Employer's Handbook to 401(k) Savings Plans is a must-have resource for any company that is considering implementing, or is already sponsoring, an employee benefits plan. Author Christian D. Rahaim expertly guides employers through the challenging, ever-changing, and heavily scrutinized processes involved with employee benefits and compensation. Employee participation in 401(k) plans now exceeds eighty percent, making this approachable guide more invaluable than ever before. Rahaim covers the three major components of offering a 401(k) savings plan: preparation, implementation, and maintenance. Rahaim walks employers through the plan-selection process, which involves careful research, analysis, and, most importantly, the assistance of outside experts. He continues with advice on putting the plan into practice, investing 401(k) monies, understanding fiduciary responsibilities, and improving communications. The Employers' Handbook to 401(k) Savings Plans also includes a thorough discussion of recent laws, such as the Sarbanes-Oxley Act of 2002 Economic Growth and the Tax Relief Reconciliation Act (EGTTRA). Comprehensive but easily understood, The Employers' Handbook to 401(k) Savings Plans is the only source employers, fiduciaries, advisors, and administrators need to remain informed and updated on the increasingly controversial, legislated, and litigated topic.
Author: Robert L. Reynolds Publisher: McGraw Hill Professional ISBN: 1260116085 Category : Business & Economics Languages : en Pages : 272
Book Description
The practical, nonpartisan guide to making our retirement savings systems work for America’s people, our economy, and the nation at large At a time of fierce political divisiveness, From Here to Security is a refreshingly balanced, non-ideological guide to solving what may be our nation’s most pressing policy challenge: achieving retirement security for all. A pioneer of the 401(k) system, Robert L. Reynolds eschews radical calls for throwing out the 401(k) entirely and creating a new government-run savings system. Our best course, he shows, is to build on what we have: a flexible, dynamic private-public system of Social Security and more robust workplace savings. From Here to Security provides a clear, powerful new approach to solving America’s retirement challenge – based on facts, data, and Reynolds’ decades of experience. While fear-mongers claim that the U.S. retirement system is on the verge of collapse; Reynolds shows why our system is actually the envy of the world. But From Here to Security is no status quo book. Reynolds lays out an action agenda to dramatically improve our retirement systems – public and private – lift our savings rate, improve people’s retirement prospects, spur faster growth – and reboot America’s national morale.
Author: Ted Benna Publisher: John Wiley & Sons ISBN: 1118069803 Category : Business & Economics Languages : en Pages : 291
Book Description
Get the most out of your 401(k) in any economy Filled with sample 401(k) portfolios for every stage of life Invest your 401(k) money wisely and make the most of your retirement Want to know what kind of investment mix you need to make your retirement money grow? Don't know what to do with a 401(k) account from your last job? Worried that your company's 401(k) plan doesn't cut it? Relax! This simple, plain-English guide shows you how to manage your accounts, minimize your risks, and maximize your returns. The Dummies Way * Explanations in plain English * "Get in, get out" information * Icons and other navigational aids * Tear-out cheat sheet * Top ten lists * A dash of humor and fun
Author: Bill Perkins Publisher: Houghton Mifflin ISBN: 0358099765 Category : Business & Economics Languages : en Pages : 243
Book Description
"A ... new philosophy and ... guide to getting the most out of your money--and out of life--for those who value memorable experiences as much as their earnings"--
Author: D J Gentili Publisher: Independently Published ISBN: Category : Languages : en Pages : 0
Book Description
"The Complete 401(k) Guide" is a definitive guide to understanding and maximizing the benefits of 401(k) plans. Written in an approachable and accessible style, this book is designed to help employees and employers navigate the often-complex world of retirement savings. The book begins by providing an overview of 401(k) plans, including their history, purpose, and key features. It then delves into the benefits of participating in a 401(k) plan, including the potential for tax savings, employer matching contributions, and long-term growth. Next, the book provides a step-by-step guide for employees on how to enroll in a 401(k) plan, including how to set up automatic payroll deductions, how to choose investment options, and how to monitor and adjust contributions. It also covers important topics such as vesting, rollovers, and loans. The book also addresses the needs of employers, providing guidance on how to establish and administer a 401(k) plan, including how to choose a plan provider, how to set up employee education and communication programs, and how to ensure compliance with regulations. In addition, the book offers expert advice on how to optimize 401(k) plan contributions, including strategies for maximizing employer matching contributions, how to take advantage of catch-up contributions for those 50 and over, and how to minimize taxes on withdrawals. Finally, the book concludes with a discussion on the importance of retirement planning and how a 401(k) plan can fit into a broader retirement strategy. It also provides resources for further information and guidance. Whether you're an employee looking to boost your retirement savings or an employer looking to provide a valuable benefit to your employees, this book is an essential guide to understanding and maximizing the benefits of 401(k) plans. Key topics -Contributions to a 401(k) plan are made on a pre-tax basis, which means that the money grows tax-free until it's withdrawn. This can help your savings grow faster over time. -Many employers offer matching contributions to their 401(k) plans, which means they'll contribute a certain amount of money to your account based on how much you contribute. This can be a great way to boost your savings. -Automatic payroll deductions: 401(k) plans are typically set up as automatic payroll deductions, which means that the money is taken out of your paycheck before you even see it. This makes it easy to save for retirement without having to think about it. -401(k) plans offer a variety of investment options, such as stocks, bonds, and mutual funds. This allows you to choose how your money is invested and tailor your investment strategy to your goals and risk tolerance. -401(k) plans are portable, which means that you can take your plan with you if you change jobs or retire. This can be a great advantage if you have a long-term career with a single employer. -401(k) plans offer a range of withdrawal options, so you can choose how and when you want to use your savings. You can withdraw money penalty-free after age 59 1/2, or you can take a loan from your account if you need to. -401(k) plans have high contribution limits, which means you can save a lot of money each year. In 2022, the contribution limit is $19,500, and those 50 and over can contribute an additional $6,500. -If you're 50 or older, you can make catch-up contributions to your 401(k) plan, which means you can contribute more money than the regular contribution limit. -Some 401(k) plans offer a Roth option, which means you can contribute after-tax dollars to your account. -Many employers offer education and guidance to help employees make informed decisions about their 401(k) plans. This can include investment advice, retirement planning tools, and more.
Author: Gary V. Engelhardt
Author: Gary V. Engelhardt
Author: Christopher R. Cunningham
Author: United States. Internal Revenue Service
Author: Christian D Rahaim
Author: Robert L. Reynolds
Author: Ted Benna
Author: Bill Perkins
Author: D J Gentili
Author: United States. General Accounting Office