Employer stops matching 401K due to Covid-19, should I change my contribution?
Hi Terry,
I’m making this brief. My employer temporarily stopped the 6% match in our 401k due to Covid-19. I am currently contributing 8% into 401k and 2% into Roth. Should I make a change to my contributions at this time?
Terry Says
Your company isn’t the only one that suspended all or part of matching 40l(k) contributions. In 2008, more than 20% of companies temporarily suspended the match in an effort to stay solvent. It’s a mean thing to do –but better to have a job than to be laid off!
First, this is likely only temporary. As things get better the match will return.
You might want to add more money to your Roth IRA if you are eligible — but still keep contributing to the 40l(k) plan.
I came across a fabulous article in Forbes discussing this entire issue. here is a link:
