401k

[Max Sawicky]

There are 'non-discrimination rules' to the
basic effect that you cannot provide a
subset of your employees with a pension. It
has to be for all, though the precise terms
could differ.

The tax benefit of a 401K is huge, so it reduces
the cost of labor to the boss.  For an equal
cost, the worker can gain more.  Or for an
equal gain to the worker, the employer can
spend less.

Overall the tax subsidy for 401K's is regressive,
but that's a different kettle of fish.

mbs

At 09:22 AM 7/14/01 -0700, Jordan Hayes wrote:
> > do employers have to provide 401ks?
>
>nope.

so, what does an employer get out of providing a 401k, as opposed to a 
fatter paycheck? does it actually amount to anything?