Grex Agora56 Conference

Item 77: Europe Learns from the US

Entered by klg on Tue Jan 31 12:36:24 2006:

1 new of 96 responses total.


#56 of 96 by marcvh on Thu Feb 2 18:00:11 2006:

The government imposes a limit on employee contributions to a 403(b) or
401(k) plan.  In 2006 it's $15k.  The employer may also impose their own
more stringent limits.  And jep, if you feel bad about your match,
remember that some employers (like mine) don't give out any match at
all.

I'm not sure that 401(k) plans have exactly been a rousing success.  The
employee is limited to what the employer chooses to offer, which are
often high-cost plans.  Because the plan is tied to the job, a large
fraction (something like half) of people end of cashing out of the plan
when they leave their job, which totally defeats its role as a
retirement savings vehicle.  Employees at companies facing financial
difficult sometimes find that their employer is making ends meet by
delaying the deposit of their contributions to the account.  And so on.


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