401k Plans Are Making a Comeback

Many companies have cut back costs since 2008, sometimes taking away from important employee benefits. But now many companies are bringing back some of those benefits. {}{} Since the downturn in 2008, companies have been looking for ways to scrimp and save.{} One way to do that was to stop, or dramatically reduce, contributions to employee 401(K) plans.{} But now, many of those companies are restoring their contributions. {}

  • Almost 15-percent of companies completely suspended their matching 401(K) contributions from 2008 to 2010... and even more companies reduced their contributions. {}
  • Of those that did suspend making payments, almost 40-percent have already restored contributions. {}
  • And another 38 percent plan to do so by the middle of this year.

Many companies will match their employees 401(K) contributions up to a certain percentage. {}So that basically means free money in your retirement savings plan. {}Restoring the contributions is good news for workers planning for the future.{} It's also a good sign that companies are feeling better about their own futures. {}{}{} {}Click here for the 7 Ways to Mess Up Your 401K.