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My employer stopped matching, what’s next?
During times of financial crisis, companies tighten their belts, and one of the first perks to go is often the 401(k) matching contribution. Yes, they can do this.
It can happen
Open an IRA
The Employer Match Can be Changed or Eliminated at Any Time
The employer match is voluntary and can be changed or eliminated at any time. The upside is that companies often bring back the matching contribution when the bottom line improves.
Continue Making Your Regular Contributions
If your employer has stopped the match, you should continue making your regular contributions. Even without the added bonus of employer matches, the 401(k) still has powerful tax advantages that you’ll want to continue to benefit from.
Open an IRA or Contributed to Your 401(k)
If your employer match will be eliminated indefinitely, you might decide to open an IRA, funding it with the money you otherwise would have contributed to your 401(k).