IBM to end 401(k) match, offering a hybrid plan. Other firms can't ‘pull off this type of change,’ expert says
Publishing timestamp: 2023-11-30 12:40:11
Summary
IBM is switching from a 401(k) match to a traditional defined benefit contribution plan. This change may be difficult for other companies to replicate, as they would need to have a comparable structure in place. Under the new plan, employees will receive a guaranteed rate of return, but it may be lower than what they could earn through more aggressive investments. IBM's change is seen as a mixed bag for employees, as it provides a stable benefit but limits potential upside. Overall, experts say it is still better than nothing, as there is no legal obligation for employers to offer a 401(k) plan or provide a match.
Sentiment: MIXED
Tickers: IBM,
Keywords: business news, personal finance, personnel, international business machines corp, labor economy, careers, retirement planning, 401(k) plans, united states,
Source: https://www.cnbc.com/2023/11/30/what-ibm-retirement-match-change-means-for-workers.html