Companies cutting 401k Matches due to Recession

<span style="font-family:Arial;font-size:12px;">Companies cutting 401k Matches due to Recession<p>As the recession continues to plague our economy, the next shoe to drop may well be your employer match on your <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink0" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">401k</span></a> plan. However, there are many things to think about when planning for your 401k strategy.</p><p>About 84% of companies in the U.S. offered employees a 401(k) match as of last year.<br>However, <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink1" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">cash</span></a>  strapped companies, reducing or eliminating the <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink5" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">retirement</span></a>  contribution may be one way to cut back on costs and save jobs during hard economic times.</p><p>Frontier Airlines already announced that it was suspending its matching contributions to 401(k) plans earlier this year. Struggling automakers General Motors and Ford, as well as Dollar Thrifty Automotive Group and real estate firm Cushman &amp; Wakefield also announced they would no longer be offering employer matches.</p><p>Any well-drafted 401(k) plan allows the employer discretion to change the company’s matching policy at any time. Whether that cost saving measure will catch on has yet to be determined. Just 2% of companies reduced their employer 401(k) or 403(b) matches this year, and only an additional 4% said they plan to do so in the next 12 months.But going forward, some experts say the trend could spread as more companies look to cut costs.</p><p><strong>Please visit our site for more Retirement, 401k, and Insurance information:</strong><br><a rel="nofollow" href="http://www.erollover.com/" style="color:blue;text-decoration:underline;cursor:pointer;">www.erollover.com</a></p><h3>Don’t stop your 401k Contributions!</h3><p>For workers who do get their 401(k) match cut, that does not mean they should also stop contributing, 401k Planning experts say. Even without the contribution from your company, there is still an advantage to socking money in a 401(k), and that’s the tax savings — your contributions come with an immediate tax deduction as well as tax-deferred growth.</p><p>However, employees shouldn’t necessarily bulk up their contributions to compensate for their employer. Instead, individuals should also aim to build up some cash reserves to cover a few months to a year of living expenses in anticipation of layoffs or other <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink2" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">financial</span><span id="preLoadWrap2" style=""></span></a> hardship.</p><p>In addition to 401(k) contributions, <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink3" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">investors</span><span id="preLoadWrap3" style=""></span></a> should think about putting money in a Roth <a rel="nofollow" href="http://www.erollover.com/blog/401a-retirement-plans/planning-401k-matches#" id="KonaLink4" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">IRA</span></a> . Those under the age of 50 can make a maximum annual contribution of $5,000, which is not deductible but still grows tax-free and incurs no taxes when withdrawn at retirement. To qualify for a Roth, you must not exceed certain income limits.</p><p>Ultimately, investors should be more happy to be retaining their jobs during this difficult economic period. Most employers reinstate these matches in better times, so the removal of your 401k match may just be saving your job.</p><p><strong>Please visit our site for more Retirement, 401k, and Insurance information:</strong><br><a rel="nofollow" href="http://www.erollover.com/" style="color:#cc0000;text-decoration:none;">www.erollover.com</a></p></span>