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Actually, this ruins 401k plans for folks who stick with the company too. Employees miss out on all the compounding throughout the year from the contributions.
by kmunoz 13y ago
Actually, this ruins 401k plans for folks who stick with the company too. Employees miss out on all the compounding throughout the year from the contributions.
From WaPo:
"In other words, employees will have to stay through the end of the year to get the match, and then the contribution won't even come during 2014. In a year like last year, where the stock market was roaring, the difference for an employee who left in December could amount to thousands of dollars in pay and added savings."
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/02/04/aol-is-leading-the-way-to-make-401ks-worse-for-everyone/ http://www.washingtonpost.com/blogs/wonkblog/wp/2014/02/04/a...
- wlievens 13y agoNot just the compounding, but also the spreading of risk, if I understand well. Which is the point with any kind of conservative pension plan.