Comments on: What do think of companies that have eliminated matching 401k plans?

By: Alvie

Alvie — Thu, 26 Mar 2009 10:01:50 +0000

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.

By: Beau.Gus

Beau.Gus — Mon, 23 Mar 2009 06:21:37 +0000

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!

By: Ed K

Ed K — Thu, 19 Mar 2009 21:17:20 +0000

If it’s true that they are financially strong, it would seem like they care more about their bottom line than anything else IMO.

By: $so fresh so clean$

$so fresh so clean$ — Tue, 17 Mar 2009 10:24:21 +0000

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.