Why making changes to your employer contributions is important

Description

Abstract: Following a dismal financial fourth quarter in 2008, many companies in 2009 elected to forgo funding their qualified plan employer contributions. This includes employer matching contributions, profit sharing contributions and other employer funding arrangements. As a result, many qualified plans consisted solely of employee contributions during the year. While the financial markets recovered by the end of 2009, many participants’ retirement funds may not show signs of recovery. This article describes how adjusting matching contributions may be one way to help employees recover some lost ground.