Employers may drop 401(k) matches as companies look to cut expenses

Of course, it also shows most companies made no pause or reduction to contributions — 4.5% actually increased them — during the last U.S. recession. This time, however, experts are concerned that this economic downturn could result in a greater share of companies needing to pause the practice until they're on sold financial footing.

"The crisis we have now is different … there's been a rapid pace of layoffs and furloughs, and companies have had to suddenly shut down," said Will Hansen, executive director of the PSCA. Hansen said that in locations where the coronavirus has been present longer — e.g., Seattle — some companies have sought advice on how to immediately stop contributions. Generally speaking, the plans seeking regulatory relief are so-called "safe harbor" plans — they agree to certain employer contribution requirements so they can escape certain other regulations. They are often favored by smaller companies.

Under current law, those plans must give a 30-day notice to participants that the employer contributions will stop, Hansen said.

sharon_epperson After all the companies got rid of employee pensions, replaced with 401K match. Now get rid of that? How convenient.

sharon_epperson 401k is dead

sharon_epperson Yup Macy's cut it. We're not getting our match

sharon_epperson tenethealth has already done this.

sharon_epperson Becky should get an Emmy for acting smart all these years with an earpiece telling her what to do and say, rough life for a TV actress especially a boiler room TV news actress

sharon_epperson Hopefully nobody had done anything stupid with 401 k like cash out. It will go back up and if it done then all that money you cashed out will be good for toilet paper and starting 🔥

sharon_epperson insureblog

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coronavirus: Some U.S. companies eliminate employee 401(k) matches to cut costsYahoo Money identified a handful of companies in health care, retail, and real estate that have recently done away with their matches.
Source: YahooNews - 🏆 380. / 59 Read more »

Resist the urge to abandon the market: your 401(k) during the coronavirus pandemicResist the urge to abandon the market: your 401(k) during the coronavirus pandemic investinyou (In partnership with acorns.) acorns Is the another way of saying 'buy the dip'? acorns What is wrong with CASH IS KING on the sideline until CoronaVirus dust settles with 401(K)? Continuing to push: may miss the rebound is IMO just not right? acorns The market is BROKEN! Please re-tweet this so we can abolish the FED NewYorkFed and return to free market capitalism
Source: CNBC - 🏆 12. / 72 Read more »

Coronavirus: Some U.S. companies eliminate employee 401(k) matches to cut costsYahoo Money identified a handful of companies in health care, retail, and real estate that have recently done away with their matches.
Source: YahooNews - 🏆 380. / 59 Read more »

US car sales spiraled in Q1 as the coronavirus pandemic continues to rock the economy - Business InsiderMost car companies reported huge drops in Q1 sales amid the coronavirus pandemic — but some companies fared worse than others. I bet
Source: BusinessInsider - 🏆 729. / 51 Read more »