Last week the trustees of the Animation Guild 401(k) Plan met to review finances and assets of the Plan. Here's a thumbnail of where the TAG Plan is:
Total Plan Participants -- 2,225
Average Number of Investments (21 funds) -- 6.5
Total Assets (among 21 funds) -- $128,316,234 ...
A word about 401(k) Plans in general: Since the Great Meltdown of 2008, corporate 401(k) Plans have become far less generous with matching employees' contributions. According to the Associated Press, 15% of companies that had some kind of match eliminated it. (The AP says a majority will have restored their matches within the next six months. Praise be. We're not sure if that includes Nickelodeon Cartoon Studios, which charges its corporate participants a fee to come aboard.)
Since TAG's 401(k) Plan was set up in 1995, lots of artists and technicians have squirreled away anywhere from $100,000 to $300,000. Added to the Industry Account Plan -- paid for by the employers -- some inviduals are up well over four hundred grand.
Even so, I encounter animators who don't want to jump into the program shown above because there's no employer match with the TAG Plan. I think these folks are missing a major opportunity. If you have the cash, you're short-sighted if you don't tuck some of it away in a tax sheltered account. Not only will it provide a nice cushion of moolah when you careen into your seasoned years, you also reduce your current tax bite.
Ah well. Some people just refuse to be led to (or drink from) the clear-flowing mountain stream.