Retirement 401k News Blog

Every company’s 401(k) plan is slightly different. Some businesses offer more lucrative company matches and more diverse investment choices than others. A national survey released today examines what the typical 401(k) looks like. Here are a few of the highlights.

Company Contributions. Employer deposits into 401(k) plans averaged 3.2 percent of pay, according to a survey of 1,011 plans with 7.4 million participants and more than $730 billion in plan assets by the Profit Sharing/401k Council of America. The study represents 401(k)’s in 2007. The most common 401(k) recipe is a fixed match, which is present in 24.8 percent of plans. Among those with fixed matches, the most popular formulas are 50 cents per dollar up to the first 6 percent of pay (26 percent of plans), one dollar for every dollar up to the first 4 percent of pay (10 percent), and dollar for dollar up to the first 3 percent of pay (8 percent).

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