Post-recession: Is it time for veterinary practices to match 401(k) contributions again?

Post-recession: Is it time for veterinary practices to match 401(k) contributions again?

Q. We stopped matching 401(k) contributions when the recession rolled in, but employees are asking when we're going to start up again. What are the pluses to matching contributions?
source-image
Oct 01, 2013
By dvm360.com staff

401(k) plans are great ways to save for retirement. Employer matching contributions—typically 3 percent of the employees' wages—can be costly for the employer but build goodwill with employees. If other local practices offer matching contributions, you may want to do so to stay competitive.

So when do you know the right time to start matching again? If your hospital is profitable and vendor obligations are within 30 days, there's no reason not to begin matching again, according to Gary Glassman, CPA, a Veterinary Economics Editorial Advisory Board member, and partner with Burzenski & Co. PC in East Haven, Conn.

"The issue with retirement savings today is that we are living longer and the need for savings is that much greater," Glassman says. "Since the government offers tax advantages, everyone should participate. You cannot begin to save early enough in your work career."

Hot topics on dvm360

Dog of Dallas Ebola patient will not be euthanized, authorities say

Health officials have quarantined and will monitor dog and amid concerns surrounding deadly virus.

Video: How to perform a belt-loop gastropexy

Prevent GDV in your at-risk patients with this simple technique.

Stretch your skills to earn more in veterinary practice

Finding new tasks could be the key to generating more income for your practice—and boosting your pay.

Veterinary community stunned by Sophia Yin's unexpected death

Prominent veterinary behaviorist died of suicide Sept. 28.

Study shows sustained salary slump for veterinary support staff

Since 2009, technicians paid by the hour have experienced a bump in pay, but pay for other team members has stayed stagnant, according to data from the 2014 Firstline Career Path Study. Here’s a look at changes in team pay from 2009 to 2013.