T. Rowe Price: Where 401(k) Design and Corporate Profitability Cross Paths

Posted on October 29, 2018

New research from T. Rowe Price finds that “great” 401(k) plans (those with above-average performance outcomes according to Brightscope®) are very likely to be sponsored by companies with 20 percent to 80 percent higher corporate profitability than companies with “average” plans. While correlation is not causality, i.e. building a better 401(k) alone will not necessarily make a company more profitable, comparing against peers may provide insight into a company’s performance against its competition.

T. Rowe Price: Where 401(k) Design and Corporate Profitability Cross Paths