A wave of US companies are suspending payments to their staff 401(k) retirement plans

A wave of US companies are suspending payments to their staff 401(k) retirement plans in a bid to cut costs amid the economic downturn.

Saks, General Motors, newspaper group McClatchy, clothing company J.Crew, FedEx, UPS, Coca-Cola Bottling, Reader’s Digest, Motorola, Regions Financial and Sprint Nextel are among the growing list of companies which have suspended contributions in recent months. Read More

This will be hurting retirees and if Obama raises the Capital Gain Taxes it will cause many more of these companies to cut cost to save money. Companies do not pay taxes, we the people pay them in higher prices and lost of benefits which will hurt the poor as well as the middle class Americans!

LINKS:

(1) Obama’s border talk: I call bull

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2 comments on “A wave of US companies are suspending payments to their staff 401(k) retirement plans

  1. Basically, this is just a way for employers to cut their wage bill in tough times. If they weren’t shorting your 401(k), they might be laying you off or going out of business.

    Whether retirement savings will recover anytime soon depends on a lot of unknowns — known and unknown, as Rumsfeld used to say. My hunch is that the biggest threat is from inflation. No matter how many bucks you’ve got left when the financial markets settle down, those bucks will be worth less as time goes on.

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