Tax Reform Fuels More 401(k) Contributions
Visa is the latest firm to “credit” tax reform with a boost to its 401(k) plan.
Visa says it will now match 200% of contributions up to 5% of base pay, up from a 200% match of up to 3% of base pay at present. They’re also planning to step up their current default contribution rate from 3% to 5% “to encourage use of the program.”
Last week Nationwide announced it would increase its 50% matching contributions from 6% to 7% of employees’ salary, along with a one-time bonus of $1,000 for workers.
SunTrust Banks has announced a 1% 401(k) contribution to retirement savings for all workers, in addition to the company’s match on the first 6% of worker contributions, as well as a $1,000 financial incentive for all workers who complete SunTrust’s “Momentum onUp” financial fitness program.
And the announcement that seems to have started it all: Aflac’s earlier announcement that, thanks to the positive impact of tax reform, it planned to increase the company’s 401(k) match from 50% to 100% on the first 4% of employee contributions, while making a one-time contribution of $500 to every employee’s 401(k) plan.