How much could a 401(k) match cost your business?
An employer match allows you to contribute to employee 401(k) plans. Match programs can help bolster your recruiting efforts and provide significant tax advantages.
Fill out your information to see how much an employer match could cost.
For other match formulas, enter total percent covered. Ex: 100% on the first 3% and 50% on the next 2% is equivalent to 4% total.
For other match formulas, enter total percent covered. Ex: 100% on the first 3% and 50% on the next 2% is equivalent to 4% total.
SMB employees say the #1 reason they started saving for retirement is because their employer offered a benefit 79% of employees prefer new or additional benefits over a pay raise 3 in 4 employers think that company-sponsored retirement plans increase employee loyalty |
What are the benefits of an employer match?
Most employers match a portion of their employee’s contributions. In fact, 75% of all Human Interest plans offer an employer match*. As this implies, offering an employer match may help you stay competitive when recruiting and retaining employees.
Not only can an employer match help you find (and keep) good employees, it may also provide significant tax advantages. Employer contributions may be deducted from your employer federal income tax returns (as long as they don’t exceed a certain amount).
How Human Interest can help
Technology has helped streamlined 401(k) plan administration. Rather than having to worry about the nuts and bolts of plans, Human Interest can help business owners like you reduce your administrative burden—no matter how much of an employer match you offer. Spend less time on back-end work and more time on running your business.
Employer 401(k) match types
There are numerous match types businesses may offer. Of all Human Interest plans, here are the most common formulas:
31% of plans: Single-tier match formula* (e.g., $1.00 per dollar on the first 4% of pay)
15% of plans: Multi-tier match formula* (e.g., $1.00 per dollar on the first 3% of pay; $0.50 per dollar on the next 2% of pay)
What’s an average employer match?
This question is difficult to answer, as businesses have their own motivations for providing different match types. At Human Interest, however, 42% of total plans that provide a match offer $1.00 per dollar on the first 4% to their employees*.
Want to learn more about offering an employer match?
You've learned how employers can match up to 6% of an employee’s contribution—but click here to read more about employer match contribution levels.
Check out our FAQs to learn 10 important things employers should know about offering a match.
You’ve calculated how much a match could cost. Now it’s time to start a flexible, affordable 401(k). Click here to find the best plan for your business.