Best Practice: 401(k)
July 12th, 2009 • Related • Filed Under
According to BusinessWeek, IBM is the leader of the 401(k) pack when it comes to providing a 401(k) for its employees. Here’s what makes it a best practice:
- Generous company match: 100% up to 6% of pay, twice what is typical
- Low fees: extremely low at around 0.10%
- One-on-one advice: financial coaches for employees and their families
- Customized target-date funds: asset allocation based on how far participants are from retirement
- Annuity comparison shopping: participants can comparison shop for annuities to provide lifetime incomes
- Auto-enrollment, escalation, and rebalancing: few big plans offer the complete automatic package
Read the article to find out how IBM combined the best features of the plans other offer and leveraged its size to create a best-practice 401(k) plan.
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