Comments on: What to Do If Your Employer Cuts Its 401(k) Match Benefit http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit Simple, Honest Financial Advice Fri, 10 Feb 2012 03:21:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jessica http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-14502 Jessica Fri, 02 Dec 2011 19:34:25 +0000 http://www.moneyunder30.com/?p=856#comment-14502 David: I'm curious...I've been doing a lot of reading on your sight and I LOVE it. I'm in the military, and we have what's called the TSP which is our 401K equivalent...we do not get any type of a match, but if we're stationed in a tax-free zone, we get tax exempt contribution benefits. I'm contributing off the top, since I don't miss the money out of the paycheck when I don't ever see it, but I also have an IRA that gets what's left over at the end of the pay period. (needless to say, neither of them are ever close to getting maxed). However, when I am deployed, I send all that "bonus" money RIGHT to the retirement account, since I'm stuck somewhere with no bills or spending opportunities (bonus, tax exempt contributions). My question is...since there's NO match, and never will be...should I take the 6K (for the new 2012 limits) and send that to my IRA FIRST, and then send what I can still afford to the TSP? David:

I’m curious…I’ve been doing a lot of reading on your sight and I LOVE it. I’m in the military, and we have what’s called the TSP which is our 401K equivalent…we do not get any type of a match, but if we’re stationed in a tax-free zone, we get tax exempt contribution benefits. I’m contributing off the top, since I don’t miss the money out of the paycheck when I don’t ever see it, but I also have an IRA that gets what’s left over at the end of the pay period. (needless to say, neither of them are ever close to getting maxed). However, when I am deployed, I send all that “bonus” money RIGHT to the retirement account, since I’m stuck somewhere with no bills or spending opportunities (bonus, tax exempt contributions).

My question is…since there’s NO match, and never will be…should I take the 6K (for the new 2012 limits) and send that to my IRA FIRST, and then send what I can still afford to the TSP?

]]> By: Kerr http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-9523 Kerr Wed, 16 Feb 2011 20:07:46 +0000 http://www.moneyunder30.com/?p=856#comment-9523 What if your employer only matches 6% with company stock? Do I take the money or invest it in funds that are diversified on an IRA? What if your employer only matches 6% with company stock? Do I take the money or invest it in funds that are diversified on an IRA?

]]> By: sue http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-6937 sue Tue, 14 Sep 2010 22:59:48 +0000 http://www.moneyunder30.com/?p=856#comment-6937 my husband has noticed that his employer has not contributed since the beginning of the year. this was a signed contract. they match my husbands . they didnt even tell him they stopped. is this legal? my husband has noticed that his employer has not contributed since the beginning of the year. this was a signed contract. they match my husbands . they didnt even tell him they stopped. is this legal?

]]> By: Money Under 30 http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-1861 Money Under 30 Fri, 19 Dec 2008 15:07:35 +0000 http://www.moneyunder30.com/?p=856#comment-1861 Well, maybe I shouldn't have written about this. It just happened at my employer. I upped my contributions to make up for it and a little bit more. Joe, if you'll be in a lower tax bracket at retirement, stick with the 401k. Roth's really pay off if you are making less now and expect to be in a higher bracket in retirement because distributions in retirement are tax-free. Also, if you make more than $95k single or $150k married you can't do a Roth. Well, maybe I shouldn’t have written about this. It just happened at my employer. I upped my contributions to make up for it and a little bit more.

Joe, if you’ll be in a lower tax bracket at retirement, stick with the 401k. Roth’s really pay off if you are making less now and expect to be in a higher bracket in retirement because distributions in retirement are tax-free. Also, if you make more than $95k single or $150k married you can’t do a Roth.

]]> By: Joe http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-1862 Joe Wed, 03 Dec 2008 17:57:57 +0000 http://www.moneyunder30.com/?p=856#comment-1862 My employer stop their matching effective January 1, 2009. Should I put money in a Roth IRA or continue contributing to my employer plan. I will be in a lower tax rate in retirement. My employer stop their matching effective January 1, 2009. Should I put money in a Roth IRA or continue contributing to my employer plan. I will be in a lower tax rate in retirement.

]]> By: Kara http://www.moneyunder30.com/what-to-do-if-your-employer-cuts-its-401k-match-benefit/comment-page-1#comment-1863 Kara Wed, 19 Nov 2008 21:13:56 +0000 http://www.moneyunder30.com/?p=856#comment-1863 My employer cut their 50% match effective July 1, 2008. I stopped contributing at that time since my husband and I are currently focusing on getting out of debt (one car loan and one installment loan) first. If my employer were to bring back the match, though, I would probably start up with contributions again. My employer cut their 50% match effective July 1, 2008. I stopped contributing at that time since my husband and I are currently focusing on getting out of debt (one car loan and one installment loan) first. If my employer were to bring back the match, though, I would probably start up with contributions again.

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