A Different Twist on a Holiday Bonus
November 26, 2013
A Different Twist on a Holiday “Bonus” – Year end or holiday bonuses used to be the norm. Yet, over the years, many companies decided to eliminate these payments as they migrated towards a pay for performance model. If that did not close the lid on many programs, the recession beginning in 2007 did. We would like to suggest a new variation on this lost tradition with an idea toward savings for the future. If you have a discretionary contribution feature in your defined contribution plan, for all eligible plan participants, make a fixed dollar holiday contribution of some magnitude. The amount would be tax deferrable, so taxes would not reduce the small stipend.
Our country ranks poorly in terms of retirement preparedness. Any reason to say thank you and point to the plan, would aid in this cause and may help employees recognize its value. We at Hubbell would like to extend to each of you our wish for a safe and enjoyable holiday season.
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