Sixty-nine percent of 401(k) plans in 2006 allowed participants to make elective deferrals to their plan within three months of their start date, up from 65% in 2005, according to the results of a Profit Sharing/401(k) Council of America survey. Among large companies with 1,000 or more employees, 85% offered eligibility within the first three months, up from 79% a year earlier.
The 401(k) and Profit Sharing Eligibility Survey also found that 49% provided eligibility for company matches within the first three months of employment, up from 48% in 2005. Among large plans, 61% provided eligibility for matching contributions during the first three months, and 35% provided eligibility for profit sharing during the first three months.
PSCA surveyed 427 profit sharing and 401(k) plan sponsors in December.
