According to a list published by the Pension Rights Center, almost 200 companies have eliminated or reduced the employer match on 401(k) plans since December of 2008. Many of the companies on the list like Chrysler, Ford and GM are in dire financial condition but some of the others are big names and may surprise you -- NCR, UPS, Hewlett Packard, Morningstar, Paychex, Xerox, Forbes, NPR and AARP.
The loss of the employer match can have a noticeable impact on how much you are able to save for retirement. If you earn $80,000 a year and your employer matches 50 cents on the dollar for your contributions up to 6 percent of pay, a single year of missed matching will cost you $2,400. If the matching is suspended for several years, and you "miss" several decades of growth of the money, the impact is pretty dramatic. To mitigate the impact, you should consider increasing your own contributions and contributing to other savings vehicles like traditional and Roth IRAs.
Is this happening to you? Has it caused you to stop participating in your company's plan? Write in and tell us about how you are dealing with the change.
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