I always joke that anytime there is a snowstorm, the local channels should just recycle their old stories about how people get prepared for the storm at the local Home Depot or supermarket. The same can be said about articles concerning 401(k) matching contributions and a bad economy. Yes, Virginia, matching contributions get cut when the economy is bad.
Some 12% of employers have suspended matching contributions to their 401(k) plans, and an additional 23% were planning to cut their match or were considering it, according to a Willis Towers Watson survey. A separate survey by the Plan Sponsor Council of America found that nearly 22% of companies with 1,000 or more employees are suspending or reducing matching contributions to 401(k) plans.
Do we know when matching contributions are restored or increased? When the economy is better.
