Study shows employers cutting 401(k) matches — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Study shows employers cutting 401(k) matches

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Employees depending on 401(k) accounts for retirement are getting another shock courtesy of the economic meltdown.

According to a survey by accounting firm Grant Thornton, 29% of companies have modified or intend to modify their contributions to employees’ 401(k) accounts. Of that 29%, two-thirds have eliminated matching contributions altogether.

Large employers were more likely than small employers to change plans. In particular, technology, retail/trade and, ironically, the financial services/banking sectors were the most likely to cut contributions.

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