After a 401(k) Match is Cut, Do Workers Stop Saving For Retirement?

I'm ticked off.....

I started with my company in mid-July of 2007 and have been a full time executive ever since. I knew that since I started after July 1st, 2007....that I was going to miss out on my companies profit share.

But that's now why I'm ticked off. Without my knowing, our HR Department "changed their profit share requirements" for the 6% which they continued to offer this year, for 2008 full time employees, which was to be paid in early March (when the DOW hovered under 6500 or so). Early March came and went....no proft sharing to be found. I contacted HR and was told that due to the above reference "policy changes", that since I started in mid-July 2007 (rather than the above mentioned July 1st cut off for 2008 profit sharing), THAT I ALSO MISSED OUT ON 2009 AS WELL!!! ALL OVER 11 BUSINESS DAYS IN 2007!!!!! At the end of the day, I will not recieve my 6% until MArch 2010, nearly 3 years into my dedicated service for my company.

A question for the author or the group: My profit share would have been $8000, payable in March 2009, while the DOW was at 6500. How MUCH MONEY have I lost from this ridiculous HR policy change for my retirement, based on an annual 8% return for the next 30 years....when I plan to retire??? I'm not certain of the math on this, so I would love (or really hate) to know!!! :)

Thanks,

Ticked Off

BobbyBoy of DC @ Apr 17, 2009 01:59:50 AM

Company Match

My employer just emailed us to say they would not pay the match for the 2008 401K plan year. Is that legal ?

Do we not have to get official notice before the plan year begins ?

Thank you.

Stuart Allen of KY @ Apr 06, 2009 16:07:24 PM

time to double up

the second my company unisys cut the 6% cash match...i maxed out my contribution percent...because i figure stocks are cheap now then they will be 25 years from now...

the best time to save is when others are panicking...

charles of VA @ Mar 18, 2009 09:31:59 AM

401k

If my company cut the contribution to my 401(k), no I will stil put the 12% every 2 weeks into my retirement account. The way I see it, that is my money and when it is time for me to finally say good by to the work force, then I know that I have done everything that i should have done to be complety active in what is going on with my 401(k). I would hope that if my company had to refigure there numbers to stay a float, I would at least opt for a cut then not at all.

Jessica of OR @ Mar 10, 2009 13:39:34 PM

Company Match

Our company just announced they are suspending our Safe Harbor 4% immediately vested match for one year. I chose to stop my participation to fund post tax contributions.

Brett of Maryland of MD @ Mar 09, 2009 08:52:41 AM

Is rolling over 401K into something non stock related wise?

My husbands company has also stopped contibuting to his 401K. We had $180,000 saved at the end of 2007. Now worth about 1/2. We will lower our maxed percentage of contribution and are considering not investing anything for the short term. We may take a tax hit but at this point we could open a Roth IRA or invest in something that may shelter some of what we feel as contributions that would be lost otherwise.

I personally would rather take it all out and hide it under a mattress as a 30% hit on early withdrawl vs. loosing 50% or more of it's entire value doesn't sound like that bad of a deal.

Kim of WA @ Mar 05, 2009 22:00:11 PM