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> The administration costs of 401k's make it more challenging for small companies to offer. It's not at all clear to me that 401Ks need to exist when we alrea
by jogjayr 7y ago
> The administration costs of 401k's make it more challenging for small companies to offer.
It's not at all clear to me that 401Ks need to exist when we already have IRAs. Why not just increase the contribution limits on traditional IRAs to 401K levels? It gives everyone access to the same savings options, employees aren't tied to a single 401K provider that can gouge them on fees, employers don't have to administer anything.
- deleted 7y ago[deleted]
- sokoloff 7y agoI don't believe that employers can pay a "match" into IRAs. (Now, whether allowing them to do so into 401(k) is a good idea in the first place is a fair question. It's great if you're a solo employer, and serves to encourage some level of savings as an individual, but I wonder if we couldn't get some of the benefit of the second in another manner.)
- jogjayr 7y agoThere's no practical reason employers can't pay a match into IRAs. It's just how the laws are written at the moment.