Money Matters: What to do if your employer cuts its 401k match
A number of companies have stopped matching 401k benefits amid the coronavirus outbreak.
This isn't the first time we've seen 401k matching cut.
According to the Center for Retirement Research Data, during the 2008-2009 financial crisis, more than 200 American companies suspended or reduced their 401k matches.
What should you do if this happens to you?
Money Magazine reports, first, consider your immediate needs. If you are in a bind, it's okay to reduce your 401k contribution.
On the flip side, if your job is secure, you should boost your contribution to make up for the missing match and keep your retirement plan on track.
Also, consider other retirement vehicles like a Roth or IRA.
The good news is, this is most likely temporary and given time, contributions will eventually return back to normal.
