joeNOSPAM@[EMAIL PROTECTED]
wrote:
> Thanks, I do understand the retention motivation etc, but I am asking
> whether a company match is in fact simple hard cash debited
> immediately
> from the cor****ate coffers, or whether there is any tax preference,
> interest-bearing
> deferment account, or other money-denominated compensation available
> to
> the company that lowers the actual cost to the company.
I meant to mention in my earlier post, there is also an "immediate and
free" up-front benefit to the company, in that while the employee's
contributions are subject to payroll tax (7.65% FICA), the employer's
match is not. So if I'm an employer, I'm way ahead by getting my
employees to defer some of their compensation and accept a matching
contribution, in lieu of up-front pay, which would cost the employer its
normal share of payroll tax.
Also, I would place much more emphasis on Tad's comment: companies can
potentially make out like bandits (literally) when the company match is
offered in the form of stock instead of cash. In addition to the search
terms Tad suggested, try "401(k) cor****ate fiduciary lawsuit". Even in
the aftermath of Enron, these types of matching contributions are far
from being solely in the interest of plan participants.
-Mark Bole
--
Mark Bole
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