What Should You Do If Your Employer Cancelled Your 401k Match?!
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What Should You Do If Your Employer Cancelled Your 401k Match?
A 401k match from your employer can be a great benefit for saving for retirement. However, what should you do if your employer cancels their 401k match? It can be a frustrating and concerning situation, but there are steps you can take to ensure you are still on track for retirement.
First and foremost, it’s crucial to understand why your employer has cancelled the 401k match. This could be due to financial constraints, changes in company policy, or other reasons. If it’s a temporary measure due to financial difficulties, it might be worth waiting it out until the match is reinstated.
In the meantime, it’s important to continue contributing to your 401k. Just because your employer has cancelled their match doesn’t mean you should stop saving for retirement. Your contributions are still tax-deferred, and the growth on your investments can still greatly benefit your future.
If your employer has cancelled their 401k match permanently, it might be time to reassess your retirement savings strategy. Consider increasing your own contributions to make up for the lost match. This can help ensure you are still on track to reach your retirement goals.
You may also want to explore other retirement savings options. An Individual retirement account (IRA) or a Roth IRA can provide additional ways to save for retirement. These accounts offer different tax advantages and investment options that can supplement your 401k savings.
It’s also a good idea to review your overall financial situation. Consider working with a financial advisor to help you make informed decisions about your retirement savings. They can help you create a comprehensive plan that takes into account the loss of your employer’s 401k match.
Another important step is to communicate with your employer. If the cancellation of the 401k match has caused financial hardships for you and your co-workers, it’s worth discussing the situation with your employer. They may be open to reinstating the match in the future or offering other benefits to help support your retirement savings.
Lastly, it’s important to stay proactive and stay informed about your retirement savings. Keep track of your 401k statements and monitor the performance of your investments. Consider attending financial planning seminars or workshops to learn more about retirement planning and make sure you are making the most of your retirement savings.
In conclusion, while it can be disheartening to have your employer cancel their 401k match, there are steps you can take to ensure you are still on track for retirement. By continuing to contribute to your 401k, exploring other retirement savings options, and communicating with your employer, you can make sure you are still building a secure financial future.
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They don't match it, you do not invest in it anymore.
but a Rorth IRA has an income limit, and a much smaller contribution limit. If you prefer a Roth, might be best to keep it parked in the 401K, which has no income limit. The 401k contribution limit is also roughly 3 times higher than a IRA.
Roth your still victim to the volatility..plus there are funding limits. Load up an executive bonus plan or IUL for tax free growth.
Do you guys take live calls? Not text msgs or emails but calls like Dave Ramsey does? Wanna hear what your answers are to real problems; i'm assuming you wouldn't ask everyone to sell their car and house
My company canceled the per paycheck match contribution and said they will give a discretionary lump sum contribution at the end of the year if you still work for them come Dec 31st. Okay, that sucks, but then they also said it's the same thing as the match. When we were like sure if it's the same amount maybe you can argue that a little, but what about the entire year's market growth that you would have been dollar cost averaging into?! Also the discretionary part of the language kind of implies in a year like this one, we aren't going to see the full amount if any.
FOO fighters!
Curious why count the match if you make under 200k but don’t count it make above 200k?
u should say IF you make over 200k a year you should MAX out your 401k and learn to live on 180
NO EXCUSES!!!!!
They cut match and you don't need the tax deduction: move it to a Roth 401k if you maxed your Roth. Or if you haven't maxed your Roth IRA, stop the contribution and put it in a Roth IRA (remember Roth is after taxes so you may not be contributing as much).
Need the tax deduction, leave it for when they start the match up again.
0:45 – Bitcoin is sitting on the sidelines, waiting for you.
With a IRA or Roth IRA you have greater opinions. With a 401 you are locked into what the 401 offer's (some good, some very bad) I was locked into a 401 with no good options. Had to ether quilt or wait until 58 1/2. Only Do The Match.
Great vid! My employer 410k had a match of 6% which was cut to 3% this month. Any suggestions on what to do if in the 22% fed tax bracket? Order of ops are met and I do not yet have a Roth IRA but plan to obtain asap. Should next step be to max out Roth IRA? (I no longer quality for tax deduction of traditional IRA contribs so I'm think Roth would be better for me now). Should I now contribute more to 401k? Just learned that employer offers a Roth 401k. Should i consider Roth 401k vs Roth IRA? Should I do both? Just want to position myself the most strategically. TIA
One minor addition to consider. My 401k is fairly limited to around 30 different mutual funds, index funds, and target day retirement funds by my employer. However, the options in an IRA are much larger, which means I can take advantage of some of the newer 0 fee S&P 500 index funds from Fidelity. Considering the S&P 500 index fund fees are already so low inside my 401k, it’s not a game changer, but it does allow one to squeeze out a little bit more money from my army of dollar bills if your employer isn’t matching your 401k contributions. Don’t forget the income restrictions on Roth IRAs, and consider Traditional IRA to Roth IRA transfers i.e backdoor Roth.