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Norwalk named No.10 Ohio city for 401(k) contributions

By IVY KELLER • Oct 28, 2016 at 10:00 AM

Good news for anyone planning for retirement — Norwalk was named one of the top 10 cities in Ohio for 401(k) contributions on SmartAsset’s 2016 study.

The Maple City rated 10th in the state, ranking among seemingly unlikely cities such as Mount Vernon, Portsmouth and Wadsworth.

According to the study, the data was pulled from the 2014 U.S. Department of Labor Form 5500 Database. Although specific employers are not examined, SmartAsset examined several factors to determine an employer contribution index for each city and decide which communities have the best 401(k) benefit plans.

“We started by looking at employer and employee 401(k) contributions to determine employer contribution percentage,” the company stated in the study. 

They added all the employer contributions and divided them by the total plan contributions.

“We then indexed the ratio to 100, with a score of 100 representing the highest employer contribution percentage. This index reflects how generous companies are to contribute to employee 401(k) plans,” the study says.

Norwalk received a 48.42 employer contributions index. This is the same as No. 9 Wadsworth, Ohio’s. Austintown, No. 1, clocked in at 84.81.

The study also calculated which cities payed the lowest annual administrative fees.

Norwalk received a 0.2 percent, ranging between No. 6 Van Wert’s 0.1 percent and No. 1 Austintown’s 0.5 percent.

While 401(k) contributions are bound to vary between employers, the Maple City’s aggregate score is certainly nothing to scoff at.

As of the 2010 census, over 15 percent of Norwalk's population was 65 years or older. That's slightly higher than the national average. As a city with a larger aging population, Norwalk can certainly benefit from better retirement benefits.

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