401k Plans Are Making a Comeback - WSET.com - ABC13

401k Plans Are Making a Comeback

Posted: Updated:

Many companies have cut back costs since 2008, sometimes taking away from important employee benefits. But now many companies are bringing back some of those benefits.  
 
Since the downturn in 2008, companies have been looking for ways to scrimp and save.  One way to do that was to stop, or dramatically reduce, contributions to employee 401(K) plans.  But now, many of those companies are restoring their contributions.  

  • Almost 15-percent of companies completely suspended their matching 401(K) contributions from 2008 to 2010... and even more companies reduced their contributions.  
  • Of those that did suspend making payments, almost 40-percent have already restored contributions.  
  • And another 38 percent plan to do so by the middle of this year.

Many companies will match their employees 401(K) contributions up to a certain percentage.  
So that basically means free money in your retirement savings plan.  

Restoring the contributions is good news for workers planning for the future.  It's also a good sign that companies are feeling better about their own futures.  
    
Click here for the 7 Ways to Mess Up Your 401K.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WSET. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.