How generous is your 401(k) plan?
February 7, 2014 6:42 PM
1. Vesting matters.
Six of the top 10 plans on Brightscopes list are fully vested the day an employee starts, while a total of 13 plans on the list offer immediate vesting. [Images: Shutterstock]
2. Generosity has a big impact on the bottom line.
The average account balance for plans on this list is $470,014 a giant leap when compared to the average balance of all plans in Brightscopes database ($99,061). To me that was just amazing, to think of an average account balance that big, says Brooks Herman, head of data and research at Brightscope. When companies are generous, people are going to be saving more, theyre going to be deferring more and its really going to drive up account balances.
3. Contribution is key.
The average amount a company contributes to each plan on the list is $31,181, compared to the plan average of $4,184.
4. Participation increases when employers kick in.
The average participation rate on the list is 96.5%, compared to the plan average of 85%.
