Keys to Protecting Your 401(k) If Your Employer Ends Contribution Matching

Photo by: Sanja Gjenero (Stock Exchange)

In a previous post, we introduced 401(k) retirement savings plans. If started early and kept growing with a good rate of contribution from both employee and employer, the 401(k) can be one of the best ways to keep the bills paid after leaving the workforce.

But there’s the catch: the vitality of the 401(k) and its ability to stand up to big post-retirement challenges is built largely on employer contribution matching, where “the boss” chips in a quarter or more for every dollar an employee draws into his or her plan.

What happens when, after years of plugging along on your investment, an employer suddenly withdraws their support for contribution matching? Today, we’ll talk about what to do. (more…)