ebartender Posted December 3, 2008 Share Posted December 3, 2008 I recently found out that "due to the current economic situation" my employer will suspend the 401k match as of 1/1/09. Has anyone else had this happen? I know it is better then them laying people off, but that just stinks. Quote Link to comment Share on other sites More sharing options...
Big John Posted December 3, 2008 Share Posted December 3, 2008 That happened to me in September as a part of "emergency cost cutting measures" Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted December 3, 2008 Share Posted December 3, 2008 Gads. I will probably stop contributing for a while if my company does that and focus on other savings. Quote Link to comment Share on other sites More sharing options...
ebartender Posted December 3, 2008 Author Share Posted December 3, 2008 Gads. I will probably stop contributing for a while if my company does that and focus on other savings. That is what I was thinking. My wife's job now offers a $1 for $1 match up to 8% of her salary but it is a 403b which I am not familiar with. I'm going to me with an financial planner to sort everything out (on top of looking for a new job). Quote Link to comment Share on other sites More sharing options...
Chavez Posted December 3, 2008 Share Posted December 3, 2008 That is what I was thinking. My wife's job now offers a $1 for $1 match up to 8% of her salary but it is a 403b which I am not familiar with. I'm going to me with an financial planner to sort everything out (on top of looking for a new job). A 403b is just a 401k for gov't employees/employees of companies that don't qualify for a 401k. In my experience they tend to be a bit more generous, but that has nothing to do with anything. My wife's company suspended their 401k match; it was only 50% up to 3% but I like all the free money I can get. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted December 3, 2008 Share Posted December 3, 2008 That is what I was thinking. My wife's job now offers a $1 for $1 match up to 8% of her salary but it is a 403b which I am not familiar with. I'm going to me with an financial planner to sort everything out (on top of looking for a new job). make sure you are vested before leaving Quote Link to comment Share on other sites More sharing options...
Big Country Posted December 3, 2008 Share Posted December 3, 2008 We are still getting our company match, but they are severely cutting back on the portion of medical that they cost and I just heard it is likely they are suspending any merit increases (raises) and revenue sharing (bonuses) for the forseeable future. Unfortunately this means that due to the big jack up in my portion of medical, I am taking a fairly significant takehome paycut starting next year Quote Link to comment Share on other sites More sharing options...
myhousekey Posted January 14, 2009 Share Posted January 14, 2009 Just opened my 401k summary statement for the last 3 months and about threw up......hard to see all that money vanish so quickly. I guess on the brightside my company is still matching so it was some of their money down the drain as well. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 14, 2009 Share Posted January 14, 2009 Just opened my 401k summary statement for the last 3 months and about threw up......hard to see all that money vanish so quickly. I have mine set up on my My Yahoo homepage so I can watch the money go down the drain every day. Quote Link to comment Share on other sites More sharing options...
polksalet Posted January 14, 2009 Share Posted January 14, 2009 Wal-Mart doesn't match Quote Link to comment Share on other sites More sharing options...
myhousekey Posted January 14, 2009 Share Posted January 14, 2009 (edited) I have mine set up on my My Yahoo homepage so I can watch the money go down the drain every day. That seems like torturing yourself. 36% loss on the year for me (20% in the last qtr). Hope everyone else did better. Edited January 14, 2009 by myhousekey Quote Link to comment Share on other sites More sharing options...
polksalet Posted January 14, 2009 Share Posted January 14, 2009 That seems like torturing yourself. 36% loss on the year for me (20% in the last qtr). Hope everyone else did better. I dumped the walmart stock after it had dropped some but not as much the market and stuck it into some crashed index funds. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted January 15, 2009 Share Posted January 15, 2009 (edited) A 403b is just a 401k for gov't employees/employees of companies that don't qualify for a 401k. In my experience they tend to be a bit more generous, but that has nothing to do with anything. My wife's company suspended their 401k match; it was only 50% up to 3% but I like all the free money I can get. Actually, the 403(B ) is the employee plan for those working for non-for-profit entities....gov't, some hospitals, schools, and colleges...and too many other numerous organizations. However, if the company set aside any money for the employee this cannot be done in the 403(B )...it is done in a 401(a ). 403(B ) will allow you put away up to 20% of your income into it...defering income tax until withdrawal. However, if you work for a school district which allows you to buy into an early retirement....Illinois charges 2.2% of pay, then you can only put away 17.8% into your 403(B ). Just an FYI Edited January 15, 2009 by TheShiznit Quote Link to comment Share on other sites More sharing options...
twiley Posted January 15, 2009 Share Posted January 15, 2009 It sucks but it's becoming a trend. We had to. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 15, 2009 Share Posted January 15, 2009 (edited) 403(B ) will allow you put away up to 20% of your income into it...defering income tax until withdrawal. 403B has the same hard cap limiting total dollar contribution as there is for a 401(k) - $16,500, not including catchups. Edited January 15, 2009 by Ursa Majoris Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted January 15, 2009 Share Posted January 15, 2009 403B has the same hard cap limiting total dollar contribution as there is for a 401(k) - $16,500, not including catchups. correct...but some 401K plan docs have lower percentage contributions... Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted January 15, 2009 Share Posted January 15, 2009 Gads. I will probably stop contributing for a while if my company does that and focus on other savings. Reconsider. To my knowledge, outside of a 401K, there are no other plans in which you can invest pre-tax dollars. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 15, 2009 Share Posted January 15, 2009 Reconsider. To my knowledge, outside of a 401K, there are no other plans in which you can invest pre-tax dollars. IRA? Also, there are company tax-deferred plans available to some. I have one. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 15, 2009 Share Posted January 15, 2009 correct...but some 401K plan docs have lower percentage contributions... Our 401k is max 30% of salary subject to the hard cap previously mentioned. And my company is still matching $ for $ to 4% of salary. Gotta love free money. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted January 15, 2009 Share Posted January 15, 2009 IRA? Also, there are company tax-deferred plans available to some. I have one. Be careful here....you cannot invest in an IRA if your company has a sponsored 401K. The IRS will ask for a letter from the employer citing that you do not qualify to participate in the 401K. I have run into this in the past. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 15, 2009 Share Posted January 15, 2009 Be careful here....you cannot invest in an IRA if your company has a sponsored 401K. The IRS will ask for a letter from the employer citing that you do not qualify to participate in the 401K. I have run into this in the past. Agreed. I was pointing out that a 401k alternative does exist. The other type of plan I mentioned is actually deferred salary, not deferred tax, though the effect is really the same. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted January 15, 2009 Share Posted January 15, 2009 IRA? Also, there are company tax-deferred plans available to some. I have one. With an IRA, its after-tax money you are investing. Now you can claim those contributions on your tax return the following year, but you lose the calendar year of growth on the tax. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 15, 2009 Share Posted January 15, 2009 With an IRA, its after-tax money you are investing. Now you can claim those contributions on your tax return the following year, but you lose the calendar year of growth on the tax. That's a Roth IRA, surely? Quote Link to comment Share on other sites More sharing options...
Double Agent Posted January 15, 2009 Share Posted January 15, 2009 That's a Roth IRA, surely? Correct. Traditional IRA is pre-tax. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted January 16, 2009 Share Posted January 16, 2009 With an IRA, its after-tax money you are investing. Now you can claim those contributions on your tax return the following year, but you lose the calendar year of growth on the tax. nope...you have till tax filing day of 2009 to get your pre-tax contribution in for 2008. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.