Visa boosts 401(k) match
Visa is the latest employer to increase its retirement benefits for employees in wake of the new tax reform bill.
The credit card giant told employees in early January that it would start matching 200% of an employee’s contributions to the company 401(k) plan up to 5% of the individual’s salary. The benefit applies to all U.S. employees except those on the executive committee. The new benefit will start in February.
Currently, Visa employees receive a match on 3% of their salary.
“Tax reform in the United States will strengthen Visa’s competitive position globally and create new opportunities for Visa to invest in our business,” the company said in a statement. “With the additional 401(k) match, Visa’s U.S. employees will enjoy a sustained benefit, consistent with the role they will play in building our business.”
Visa’s news follows a similar announcement made by Aflac. The insurance company said recently it was increasing its match to 100% on the first 4% of employee contributions to the company’s 401(k) plan. That’s double its previous match of 50% of an individual’s first 6% in contributions to the plan. Aflac also said it would deposit a one-time contribution of $500 into each eligible employee’s retirement account.
The tax reform bill lowered the corporate tax rate from 35% to 21%, spurring many large companies —including American Airlines and Southwest Airlines — to step up to either give additional workplace benefits or one-time monetary contributions to their employees.