How Does Your 401(k) Match Up? by Hilery Z. Simpson, Bureau of Labor Statistics, May 26, 2010
“The National Compensation Survey (NCS) provides a rich source of data on retirement benefits. This article presents an overview of NCS terms for typical savings and thrift plans in language that is easy to understand. How can you determine the quality of your employer-provided 401(k) plan? The most common way is to compare your plans provisions–the terms of the plan–with plans provided by other employers. Is the amount that your employer is willing to match generous? Do you have a long or short waiting period before you can enroll and begin accruing benefits? Are you allowed to invest in a variety of asset classes, or are you limited to just a few choices? Estimates from the National Compensation Survey can help you determine whether the plan offered by your employer is better–or worse–than the average private employer defined contribution plan1 offered in the United States.2 In order to make comparisons, youll need your Summary Plan Description or some other document that fully explains the details of your current plan. With this information, youll be able to start your investigation.”
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