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Author: mstevens Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Employer IRA Date: 6/9/1997 3:53 PM
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Attn: TMF Pixy

Any tips on matching 401k contributions as an employer? Would the savings in payroll burden be a good place to start?

Mike
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 58 of 75540
Subject: Re: Employer IRA Date: 6/9/1997 6:16 PM
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Attn: TMF Pixy

<<Any tips on matching 401k contributions as an employer? Would the savings in payroll burden be a good place to start?>>

I'm not sure what you mean by "savings in payroll burden." From an employer's standpoint, the salary deferred through the 401k is still going out, and it still constitutes an expense deduction for the business for tax purposes. I gotta admit you lost me on that comment.

As to the match, just remember the employer must do so at the specified level regardless of the firm's profitability for the year. Accordingly, the best suggestion I can give here is keep it at a manageable level that can be sustained over time, to include the lean years. You could set it up at some minimum level (say 2% of pay max) with the option of adding more at the employer's discretion. That provides you with more flexibility so employees can be rewarded in good years. The lower minimum protects you in the off years.

Hope that helps..........Pixy

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