Tax code items from Bottom Line Business: If your rank-and-file employees are not contributing as much as they could into their 401(k) plans, the retirement savings allowed for your top-paid employees could be cut back.

According to Ted Benna, whose ideas led to the invention of the 401 (k) plan, the tax code ties the 401 (k) savings of top-paid executives to that of other employees in the company. Surveys show that up to half of all employees who are eligible to participate in a 401 (k) plan contribute less than half the amount they're permitted.

One way to increase your employees' contributions is to teach them about your company's 401(k) plan, showing them how to calculate the amount of money they'll need for a comfortable retirement and the amount they must contribute to finance it. Other advantages to emphasize are tax-deferral aspects, matching contributions, and (especially for younger employees) the ability to borrow against the plan.

Benna stresses the importance of oral teaching, saying that it's much more effective than printed materials, and harder to overlook.