What do think of companies that have eliminated matching 401k plans?
asked: My company stopped matching 401k plans and many people are upset. The company claims that they are financially strong so why cut something like this? Does this mean they don’t care about their employees?
March 17th, 2009 at 5:24 am
It means they’re trying to save money, not so much having something against employees. But you’re still getting a tax break, so keep contributing.
I’d also look into a Roth IRA. Tax-free earnings, withdrawals can be made starting at 59 1/2 if you’ve owned it for 5 taxable years, and you can always borrow against the principal.
March 19th, 2009 at 4:17 pm
If it’s true that they are financially strong, it would seem like they care more about their bottom line than anything else IMO.
March 23rd, 2009 at 1:21 am
Eliminating the match is substantially the same thing as giving employees a pay cut. Given the current economy, many, many companies are faced with the choice of pay-cuts or lay-offs…if I were you, I’d be grateful to take the pay-cut.
You may not have noticed, but 241,749 folks were laid off in January.
If they are a publically-traded company, they have no choice but to say they are “financially strong” otherwise the stock would collapse and NOBODY there would have a job!
March 26th, 2009 at 5:01 am
It’s an employers’ market now. The unemployment is rising. And companies don’t have to pay as much as before for their employees. Because they can always hire other people, if some employees leave.
Private companies are in business for profits. And if they can increase profits by decreasing the wages and benefits of their employees. Then this they will do in most cases.
Only labor unions can protect employees from this to some extent. But such union protection often leads to increased layoffs and job losses.