Sixty-eight percent of employers report that their company allows employees to contribute 25% or more of their earnings into their 401(k) plan, according to a recent survey of 401(k) practices by BLR.
This is a significant increase over the 58% of organizations that allowed such 401(k) contribution levels in BLR’s Survey of Employee Benefits in late 2006.
While 22% of responding employers do not match employee 401(k) contributions, 32% match between 2% and 4% of salary, and 33% match up to 6%. Of those organizations that match 401(k) contributions, most (59%) match at least 50 cents on each dollar contributed.
The survey, conducted by BLR’s HR Daily Advisor in November 2009, received over 1,000 responses, of which 75% originated from companies with fewer than 500 employees. The responses were evenly divided geographically within the United States.
For detailed survey results, see the 2010 Fringe Benefit Survey Series - 401(k) Practices.