401K Contributions

[Fixedopsmgr]

I am trying to get an idea of what the 401k contribution your dealers provide. My dealership currently is contributing 1% which seems low to me.

Thanks

[robc]

I believe our research has shown 2 - 3% to be more the norm. Sometimes this gets convoluted because some dealers have different rules regarding match contributions.

For example, I think the best rule is the first 1% is a given, after that the shop will match employee contributions up to 3%. At that rate the employee is socking away 6% into a 401K which is probably what most would consider a good level of retirement savings.



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Fixedopsmgr]

Thanks for the insight. Our dealer matches 4%, but only on 25% of your pay. This equals only 1% which does seem a little low. He said that when he put this thing together that this was the industry norm. If anyone else could provide their formula it might be helpful in getting ours raised a little.

Thanks

[David Eby]

Our dealership matches 50% of the first 6% that a employee contributes. The employee can max out at 15% of total income.

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[RickW]

A Chevrolet dealership I worked for matched 2% up to 10% of gross income.

[partsguy]

The Chevy store I work at matches 50% up to 5% of your gross wages, ie. 2.5%. He also pays all fees, which not many employers do. From what I have seen, this is a pretty generous plan for dealerships. The percent match is important, but equally important is:

1. Who pays the fees (usually hidden in the "returns").
2. Are you in quality, well diversified mutual funds? Or are you in low risk (and low return) guaranteed funds?

Most people do not realize what a 401k can be worth in 20-30 years, but there is a good website (bloomberg.com), that has a financial engine that can calculate the worth of your account. With an early start, and a little sacrifice, it is not hard for "Joe Public" to accumulate 1-2 MILLION in your 401k.

Bruce

[chevyman]

Our dealership matches 25% uo to the first 10% contributed by an employee ( or 2.5% ). However, nearly all fees in operating the the 401k plan are absorbed within the plan itself.

[SD]

Am employ in our plan must contribute at least 2% (up to max of 15%). We match the first two percent.

Can anyone give me feedback on other benefits. % of Insurance cost covered, vaction/sick time, bereavement leave, etc. Is there a place to find out "industry norms" on such things?

[Money Man]

Our Chevrolet / Toyota dealership 401k match is 25% up to 10% of ones compensation (ie., 2.5%). However, the plan (employees) pay all expenses except annual audit / tax returns.

We have very benefit rich health insurance plan...but we pay for it! 50% of any premium is covered by the employee. The near term outlook does not look good with 15% - 25% annual increases expected each year. Not much else available in benefits!