One key factor, financial professionals said, is whether there is an employer match for the 401(k) contributions.

The company matches each dollar of employee contributions up to the first 5 percent of their salaries, which is generous as employer matches go.

That is because of employer matches and wider investment choices, he said.

And if you receive an employer match, not investing is like returning free money.

Both employee and employer contributions to 401(k)'s count toward the savings result, though data on employer matches can be a bit out of date.

He also called for reducing employees' pension contributions, having a cost-of-living adjustment for pension benefits and having a 401(k) retirement plan with an employer match.

Your employees can contribute up to $8,000 in 2003, and no other contributions - other than your employer match or non-elective contributions - can be made.

Consider the myriad benefits missed: reduced taxable income, compounded gains that are tax deferred, and, very often, an employer match of contributions.

But that law affected few plans, because it applied only to employee contributions, not to employer matches.

"We certainly don't want to take steps that would cause employers to rethink the offering of employer matches," Mr. Delaplane said.