Need a push to save for retirement? This 401(k) gives you up to $250 cash back
CBSN
The statistics on Americans' lack of retirement readiness can be startling, with almost 1 in 3 older workers approaching retirement without a dime socked away. Now, one company is dangling a carrot it hopes will get more people saving: up to $250 in cash if they put money into a 401(k).
The new incentive is from a fast-growing administrator of 401(k) plans, Human Interest, and focuses on a little-known portion of the Secure 2.0 law passed last year. The provision allows employers or plan providers to offer financial incentives that encourage employees to put money into their retirement plan.
Human Interest said it's the first time that a plan has offered a 3% cash-back reward to retirement savers. Though other companies may have financial incentives to boost retirement spending, it's usually through matching contributions. For instance, Robinhood sought last year to attract people with an IRA by dangling a 1% match for those who opened retirement accounts at the trading app.
