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I would think that employers would be happy if they didn't need to manage 401K plans. It would be one less thing for them to do if employees just signed up for
by jogjayr 9y ago
I would think that employers would be happy if they didn't need to manage 401K plans. It would be one less thing for them to do if employees just signed up for automatic IRA deductions with payroll and provided IRA account numbers in case of employer matching.
- lotsofpulp 9y agoIRA limits are $5k, 401k limit is $18k. Right now, smaller employers have higher per employee costs for administering 401k than bigger employers. I wouldn't be surprised if large employers were even compensated in some way for access to manage (collect fees) from all of the large employees' 401k funds.
- jogjayr 9y agoI meant replace 401Ks with IRAs wholecloth and raise the limit to $18k. Is it fair that some people are allowed to save (and deduct) $18k for their retirement while others are only allowed $5.5k?