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Subject:  Re: New law needed for 401k Date:  10/6/2007  11:31 AM
Author:  aj485 Number:  59444 of 78668

I'm already contribute IRA investing ($5000/year) .

That's a good start. Are you also investing money that you could be investing in the 401(k) ($15,500/yr) in taxable accounts?

I think in terms of incentive the companies can use other methods to keep their employees . 401k is a government approved tax deferred program that government has implemented for people to have incentive to invest for their retirement and I don't think the companies should use it as a tool to take advantage against their employees . I can understand if they don't want to match any money for new employees for certain period of time that would be their right , But in this case we are talking about allowing an employee to contribute .

Especially for small businesses, it is likely that every employee account that is set up has a cost to the company. That's a real dollar cost in terms of how much the company has to pay an administrator. The company needs to determine if it is worth the cost to allow employees to contribute, if they are going to stay less than 1 year, on average.

As you know we live in a society in which people live mainly for today .

That's not going to be solved by requiring companies to allow employees to contribute to 401(k)s from day 1. It's a culture and attitude change.