If Your Employer Stops Matching Your 401(k), Here's How To Pivot And Come Out Ahead
- 4 years ago
A recent Fidelity Investments survey revealed about 10% of employers have suspended their company's 401(k) match, or at least plan to.
If you've lost your match, it's likely to be a year or more until it comes back.
But according to Business Insider, that's not to say you shouldn't keep saving — you might just change how you're doing it.
If you're no longer getting the match and want more flexibility, look into putting more savings towards an IRA first.
IRAs have more flexibility, more investment types to choose from, and the cost might be lower.
A Roth IRA could also be a great idea if you're eligible. You pay taxes on them now, instead of later, when you retire. Handy!
Singles earning under $139,000, or couples earning under $206,000 can contribute up to $6,000 to a Roth in 2020 — $7,000 if they're age 50 or older.
If you've lost your match, it's likely to be a year or more until it comes back.
But according to Business Insider, that's not to say you shouldn't keep saving — you might just change how you're doing it.
If you're no longer getting the match and want more flexibility, look into putting more savings towards an IRA first.
IRAs have more flexibility, more investment types to choose from, and the cost might be lower.
A Roth IRA could also be a great idea if you're eligible. You pay taxes on them now, instead of later, when you retire. Handy!
Singles earning under $139,000, or couples earning under $206,000 can contribute up to $6,000 to a Roth in 2020 — $7,000 if they're age 50 or older.