401k Changes for 2010
In the year 2010, employers will be more involved with their 401k plans. It is expected that employers will automatically sign up their employees for this retirement account. Unless you opt out, you will be automatically enrolled to a retirement account. Fifty nine percent of employees have already done this, and that number has gone up since 2009 when it was at fifty one percent.
But this automatic enrollment does not guarantee a secure retirement for all. Some companies plan on adding a feature that will also, automatically, increase the contribution rate of employees.
Employers also are looking into being more involved with helping their workers to choose investment. At this time, just fifty one percent of firms offer investment guidance where other firms will offer it in the future. They also plan to educate the workers about investing and about their fund fees of the 401k. In 2009, some companies suspended their match to the 401k but many companies say they will reinstate it this year. Eighty percent who cut the match, say they will resume it this year.
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