In light of the economic recession and the news that big-name employers like GM, Sears, FedEx, Motorola and Starbucks have suspended 401(k) matching contributions, you may be tempted to keep the option as an open hole in your company's ever-tightening belt.
That, however, would be a mistake.
Why? For one, according to
Third, for employees who stay in the plan, "It's penalizing the folks who are doing the right thing (by) contributing to their retirement," Alec Dike, a senior financial counselor for Watson Wyatt, told USA Today. And fourth, move could scare off the very shareholders/customers you're seeking to calm, as Dike says, "it suggests you are in worse financial straits than you really are."
What are your thoughts? Is your company considering eliminating/already eliminated its 401(k) match? Why/why not? Comment below.