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The Language of Employees Savings: Encouraging Employees to Capture the 402(g) Limit

How do you respond when an employee asks you “how much should I be contributing to my 401(k) plan?” If you are like most plan sponsors, providers or advisors, you will typically respond by beginning a dialogue about how employees should be deferring at least a certain “percentage” of pay, that this “percentage” should be high enough to capture the employer match and that this “percentage” should be increased annually. But if you ask us, our answer is simply this: “$17,000…the maximum the law allows.”

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