Many Employers Modifying or Eliminating 401k Matching

A recent study from accounting and tax advisory firm Grant Thornton indicates that many employers are pulling back on 401k plans in light of the difficult economic climate.

Grant Thornton surveyed 283 companies.  Findings include:

• 29 percent have modified or intend to modify their 401k employer matching contribution.
• 20 percent of all respondents plan to eliminate the employer match entirely.
• Larger employers are more inclined to make changes to their 401k plans.
• Companies in the health care and not for profit sectors are less likely to make changes to their 401k plans.

Source: Grant Thornton

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