This is a survey sent to business owners:
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Based on how your employees managed their 401(k) plans during the recession, has your company done enough to educate them?
Yes, we have done all we reasonably can to educate them about managing their 401(k) plans.
21%
No, we need to do more to educate them.
79%
n=40
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I thought the whole point of the 401k is employees can do it all themselves. I don't think a company has any responsibility for educating employees about things they should be teaching themselves.
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The vast majority of people seem to be entirely incapable of planning for their own retirement. (Or at least unwilling.)
Hence the growing prevalence of auto-enrollment options in 401k, employer-selected default funds (rather than leaving the money market as the default fund, which used to be standard), and similar negative consent options.
Of course, it's not the employer's responsibility to coach their employees to save for retirement, but they lower their payroll tax liability based on how much their employees are deferring into the 401k, so the aforementioned options are becoming increasingly popular.
It's just knowing how to use a webpage.
It's just knowing how to use a webpage.
Well, don't you need to know what funds to elect to contribute to; and when to re-balance, etc...
Incidentally, I once heard that the "k" in 401k stand for 'The Kellog Corporation'. Apparently its management lobbied their local congressman to make a tax loop-hole so they could contribute money pre-tax. Seems to have worked.
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It's just knowing how to use a webpage.
Well, don't you need to know what funds to elect to contribute to; and when to re-balance, etc...
Incidentally, I once heard that the "k" in 401k stand for 'The Kellog Corporation'. Apparently its management lobbied their local congressman to make a tax loop-hole so they could contribute money pre-tax. Seems to have worked.
That may be an amusing coincidence, if true.
As it stands, the naming conventions of employee benefits are far more mundane. It is called a 401(k) because it is found in section 401 of the IRS code, subsection (k). Same with 403(b) accounts, 402(g) limits, "Section 125" plans, etc.
