Should you suspend matching or nondiscretionary contributions?

Description

Abstract: Employer contributions to participant 401(k) plan accounts are typically high on the list of expense-cutting options when times are tough. Plan sponsors facing dire straits may have little choice but to suspend contributions. In the wake of the economic uncertainty due to the COVID-19 pandemic, plan sponsors need to weigh the pros and cons before making a decision, in the context of other cost-cutting alternatives they might have. This article presents some considerations to take into account.