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

Sort By:
Most Helpful
December 2016
88% of people found this answer helpful

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®

December 2016
May 2017
December 2016
November 2009