A 2009 survey was conducted by BLR’s HR Daily Advisor last November and received more than 1,000 entries to gather their data. They identified that 75% of the responses came from companies with less than 500 employees.
A similar 2006 survey found that 58% of organizations allowed high contribution levels for their employees. The IRS currently permits people to contribute a maximum amount to their 401(k) of $16,500 each year. For people who are age 50 or older, the additional catch-up contribution is an additional $5,500, for a total maximum limit of $22,000 a year.
This most recent survey of 401(k) practices found that 68% of employers allow employees to contribute 25% or more of their wages to their 401(k) program, according to marketing research company Business and Legal Resources.
The survey concluded that 22% of employers do not match 401(k) contributions at all, 32% match between 2% and 4% of wages, and 33% match up to 6% of wages. Among the organizations that match 401(k) contributions, 59% reported they match at least 50 cents on the dollar.
If you are in a position where your employer is limiting your ability to invest in your own retirement and future, call us for alternative investment strategies.
