Search
 

IBM Makes Changes to 401(k) (WSJ)

Company could save millions by paying employee match in a lump sum at year-end.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IBM will alter its 401(k) plan next year by making its contribution to employee accounts in a lump sum once a year, on Dec. 31, in a move the Wall Street Journal estimates could save the company millions of dollars a year. IBM contributes from 6% to 10% of employees’ pay, but under the new system, workers who leave the company before Dec. 15 won’t qualify for the match unless they are retiring.

The Journal notes that for employees, the change eliminates the advantage of “dollar-cost averaging” which is the concept that multiple investments made over time average out risks and return.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury and Risk

Treasury and Risk

Treasury and Risk Staff Writers

More from this author

 

Recommended Stories

U.S. Consumer Spending Cools

Reade Pickert |

The slowdown in consumer spending, the main driver of the U.S. economy, adds to concerns about the economic outlook.

Crypto in the Crosshairs

Parmy Olson |

Q&A with Geoff White, author of the new book “The Lazarus Heist,” about the increasing sophistication—and success—of North Korean hackers.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.