John Mateyko, APMA®, WMCP™, RICP® on What Employers Should Know about 401(k) Matching
I’m writing today to touch base about 401(k) matching. Although benefits like a pet-friendly workplace or gym membership make headlines, traditional benefits like retirement offerings lead to higher levels of employee loyalty and job satisfaction. In fact, a 2019 study found that 68% of workers said retirement benefits were a critical factor in determining whether they accepted a job and 62% said it would determine whether they stayed at a job. Moreover, 62% of workers also said they view an employer match as key to their retirement future. With that said, if you’ve yet to provide a match to your employees, you may want to look into it. To get you started, here’s an overview of how it works and benefits your overall operations:
A 401(k) plan allows employees to contribute a portion of their wages to save for retirement. A 401(k) match is an employer’s contribution to an employee’s retirement account. Contributions are made in addition to contributions made by employees.
Employer matches are made on a percentage basis, such as 25%, 50% (partial match), or even 100% (full match) of an employee’s contribution amount. For example, an employer may match 50% ($0.50) for every $1 an employee contributes up to 6% of their salary. If an employee makes $60,000 annually, 6% is $3,600. If an employee contributes the full amount, an employer will contribute half the amount — $1,800 — as a match.
Many employers, worried some will “take the money and run,” offer a vesting schedule. With this arrangement, employees can only take contributions once they have participated in the retirement plan for a certain length of time.
Keep in mind business owners with employees can contribute a sizable portion of their salary to their own personal 401(k) account, possibly putting them in a lower tax bracket.
Employers receive tax benefits for contributing to 401(k) accounts. Their matches can be taken as deductions on their federal corporate income tax returns, and they are often exempt from state and payroll taxes. In the “hierarchy” of employee benefits, a generous 401(k) match is at the top of the list for employees. About John Mateyko John Mateyko is an experienced financial advisor with a successful career spanning over two decades. Currently based in Serenbe, Georgia, he serves as the Managing Partner of IDEX Financial, a firm he founded in 2010. His primary focus is on creating retirement income plans that aim to help clients achieve their financial goals. After graduating from Augustana College with a degree in business studies, John embarked on a fulfilling career, holding key positions at reputable firms such as Morgan Stanley, Atlas Securities, US Bank, and JP Morgan Chase. Throughout his career, he has been recognized for his exceptional portfolio management skills. John Mateyko’s commitment to delivering exceptional service is evident through his prestigious certifications, including Fiduciary Financial Planner, Wealth Management Certified Professional (WMCP), Retirement Income Certified Professional (RICP), and Accredited Portfolio Management Advisor (APMA). He is currently pursuing the Certified Investment Management Analyst (CIMA) certification from the esteemed Yale School of Management, emphasizing his dedication to continuous professional growth. About IDEX Financial IDEX Financial, established in 2010 as a boutique investment firm in Chicago, expanded to the Atlanta, Georgia market in 2018 and established its headquarters in Serenbe, Georgia in 2020. At IDEX, John’s primary objective is to guide clients through the complexities of retirement planning. He customizes strategies striving to meet each client’s unique financial needs, aiming to provide expert advice and a sense of security with the goal to empower them in making informed decisions about their financial futures. Outside of his professional responsibilities, John values his family and community. He and his family actively engage in community enrichment activities in Serenbe, a peaceful town in rural Georgia known for its focus on wellness, community spirit, and appreciation for nature.
In conclusion, John Mateyko’s extensive experience, commitment to ongoing education, and personalized approach demonstrate his dedication to positively impacting the lives of his clients and the community he calls home.
