How does an employer benefit from a 401(k) matching plan?

401(k)
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December 2016
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An employer gets a tax deduction for matching contributions. It also helps to promote goodwill toward the employees so they remain, thus reducing their turnover. This is especially true if they have a vesting schedule where the employee must work for a certain time period, usually around 3 years before they vest in the matches made.

Hope this helps, Happy Holidays, Dan Stewart CFA®

November 2009
December 2016
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December 2016