What is most common matching contribution level for 401(k) plans in th

[richard]

I recognize there is no such thing as a "normal" match to a 401(k) plan. It depends on the company size, their industry, whether or not there they offer other plans, their compensation philosophy (pay vs. benefits), etc.

Ignoring all of that, what is a "normal" match --- more specifically, in the internet, software, computer industry.

Admittedly, surveys can only provide rough guidance. But, I'll take what I can get.

(My starting point for a match in consulting situations is 50% for the first 6% of compensation. Gee, what a concept. And then I go up or down depending on affordability, etc. But here, the issue is not only affordability, but business competitiveness.)

Thanks

[Greg Judd]

Originally posted by richard

(My starting point for a match in consulting situations is 50% for the first 6% of compensation.  Gee, what a concept. )

Software outfits seem to like $1 for $1--in a very few cases, more than $1 for $1--hereabouts. While many were edging towards faster vesting, anecdotal evidence suggests some are "rethinking" that direction. Can't imagine why....

Hardware firms appear more pragmatic - matching at lower % of contribution &/or % of pay. Possibly more a function of company/industry maturity (?)

[Guest rmeigs]

According to the Profit Sharing/401k Council of America’s most recent survey of 401k plans, the most common type of fixed match is $.50 per $1.00 up to the first 6% of pay. That is as close to “normal” as I could come up with. But, the Silicon Valley accounting firm Mohler, Nixon & Williams does conducts a 401k survey of over 400 Northern California firms annually. You may wish to contact them directly to see what information they have. My understanding is that they will provide copies of their full survey upon request. Contact Melinda Solberg at 408/364-3000 or send e-mail to 401ksurvey@mohlernixon.com.

[Dave Baker]

Remember that the vesting schedule applicable to the matching contributions is another important factor -- see http://www.401kafe.com/commentary/feature/...ure_100200.html