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

Vetcetera: The complex topic of canine fear-related aggression

A guided tour of resources for addressing this popular and complicated subject, featuring advice from Dr. John Ciribassi.

Reality TV and the veterinarian: Discussing mainstream dog training advice with clients

Your clients may be getting behavior advice from cable TV. Get your opinion in the mix.

Blog: Election results pose obstacles for veterinary prescription law

Flip in U.S. Senate's majority may slow progress of Fairness to Pet Owners Act.

7 steps to a better relationship between veterinarians and rescue groups

A DVM in the city shares his advice to veterinary practices for working with rescues.

The war between shelters, veterinarians needs to end

Despite practitioners’ legitimate gripes, they’re hurting themselves.