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Employers start to suspend their 401(k) match

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Since the collapse of the economy in 2020, 16 large companies have suspended their match so far, including Tenet Health THC, -4.34% (119,660 active 401(k) participants), Marriott Vacations Worldwide MAR, +0.16% (9,715 active participants), and Amtrak (18,780 active participants).

Marriott - Last I checked I thought just about everyone but bare bones staff are furloughed from there.

Amtrak - I'm surprised the unions let Amtrak do that.

Tenet Health - WHAT? For all the money that flows into health care companies ....

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My employer's match has a baseline, and then an additional percentage that's indexed to the financial performance of the company.

 

Regardless of whether the match goes up or down, I consider it neither a "raise" nor a "pay cut."  

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We are still matching up to 8%

 

My employers 401k has pretty much always been locked down. Can't borrow from it. About the only way to get your hands on it, is to retire, get fired, or quit. 

 

No kidneys, home purchases, no using to save your home, no college, etc, etc etc etc etc etc etc etc etc 

 

Their thinking is simple. They understand the salamander lifestyle. They want you have something one day when you can't earn anymore. 

 

2009 was a real eye opener to some of our employees. Some employees lost their homes due to simply living beyond their means, not because they lost their jobs or had some medical disaster. Matter of fact, no one lost their jobs, or had pay, or hours cut back. Same is holding true today as well.

 

Our health insurance is also pretty good. Includes zero deductible medical too, with low employee contribution rates. We had an employee last year, get a transplant. Zero out of pocket. Prescription plan ain't half bad either. I've seen $20 co-pays for $5k+ meds. Lol.

 

We've never had a bank loan on anything either. Being in debt to money changers is an abomination to our corporate principles. 

 

Our turnover has always been extremely low. 

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46 minutes ago, TheVig said:

We are still matching up to 8%

 

My employers 401k has pretty much always been locked down. Can't borrow from it. About the only way to get your hands on it, is to retire, get fired, or quit. 

 

No kidneys, home purchases, no using to save your home, no college, etc, etc etc etc etc etc etc etc etc 

 

Their thinking is simple. They understand the salamander lifestyle. They want you have something one day when you can't earn anymore. 

 

 

Curious, can such restricted funds still be used as "reserves" during mortgage underwriting?

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49 minutes ago, hegemony said:

Curious, can such restricted funds still be used as "reserves" during mortgage underwriting?

Depends how deep the underwriter wants to check, and how honest you are. We had a employee a few years looking to buy his first house. The underwriter made him prove he had access to his 401k just incase hard times happened. Needless to say, the mortgage didn't happen.

 

Another years ago went app happy with Amex. Achieved high limits and so on. They FR his butt. The 4506 alone wasn't good enough. On his initial apps, they asked about access to investments and retirement accounts. He lied. They shut his butt down.

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