The vast majority (87 per cent) of 401(k) retirement plans — covering more than 90 per cent of 401(k) plan members — offer employer contributions, according to a report by BrightScope Inc. and the Investment Company Institute.
The report, which analyzed 64,000 large private sector 401(k) plans, found employer contributions represented 31 per cent of total contributions. Fewer than a fifth (15 per cent) of 401(k) plans had automatic employer contributions.
Among large 401(k) plans that offer employer contributions, roughly 50 per cent offered a simple matching contribution. Among these plans, 24 per cent offered a simple match of 50 per cent up to a participant contribution of six per cent of pay, while 15 per cent matched dollar for dollar up to a maximum participant contribution of four per cent.
The report also found large 401(k) plans offered plan members, on average, 28 investment options. Nearly all large 401(k) plans offered domestic equity funds (nine, on average, when offered), international equity funds (three, on average) and domestic bond funds (three, on average). Almost nine in 10 (86 per cent) plans offered target-date funds (10, on average).