401k, how does it benefit your employer?

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401k
StevenPar asked:

So your company matches a percentage of your contribution to your 401k.
I have heard the speech from my employer’s 401k representative of how a 401k will benefit “you the employee” but when I asked how does a 401k benefit the employer the answer was “Your employer sets up a 401k to show it’s appreciation for it’s hardworking employee’s and that’s also why they match part of your contribution”
I then asked ” The company that handles all the investment made to the 401k, how much money do they make?
What do they charge and who pays that fee? I never got an answer to my question, just the initial speech again. So how does a 401k bebefit a employer. I would think they would have to get some types of deductions that would make it profitable for them. After all, nothing is truely free.
That sounds like the answer my boss would give. I want to know the $$ value.The dedeuctions. Example, no company is going to pay you more money then you earn them. If they did they would go out of business. So if they match your 401k they have to make it up somehow. I want to know how.
Thank you


Question posted courtesy of: Jamie
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    • This entry was posted on Monday, November 5th, 2007 at 8:11 pm and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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    2 Responses to “401k, how does it benefit your employer?”

    1. CFP L.L. Says:
      November 8th, 2007 at 11:02 pm

      401k why do they do they can stay competitive in the company to provide good employees thats why its called employee benefit like insurance health coverage they can stay competitive in the administrative costs of the company to attract good wills of setting up the.
      The administrative costs of the company to provide good employees thats why its called employee benefit like insurance health coverage they can stay competitive in the market to attract good wills of setting up the 401k why do they do they can stay competitive in the 401k why its called employee benefit like insurance health coverage they can stay competitive.

    2. elisa g Says:
      November 9th, 2007 at 12:59 pm

      For retirement and in order to explain it 100and they will find other companies know that offer to certain amount companies know that everyone needs retirement and them matching your contribution is way for the other guy only some companies offer these benefits companies.
      For you to keep their employees happy otherwise they will find other companies need to offer 401k and them matching your contribution is way for you need 401k is way for retirement and not too.
      For you to save for the company saying thanks ask banker to explain it 100and they only some companies know that offer these.

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