You are lucky if the economy hasn't affected your company as times are tough and for many (rather most) the economy is driving profits down. I agree with employers when they say that we gave you a better 401K match when the profits were good and lets reduce it or in some case suspend it when profits are down. 

So why do I agree?Isn't that a better option that getting laid off? I see so many people grudging or whining about it and I fail to understand why that's so hard to understand. Companies are in the business of making profits .. they can give you a better salary or benefits if they make profits or you do leave them for a better opportunity. The employer being a parent and its a family co's is all good but no employer can replace your parents or even come close to it. 

To save cost they have to cut expenditure and one of the best places to do is 401(K) and the pension plan. The ability to discontinue contributions in weak periods is one of the features of the 401(k) plan. By cutting 401K costs , companies save millions of dollars in spendings. So either by completely eliminating a match or reducing the match , the company saves money.

I would say that If you still have the opportunity with 401K, contribute the maximum amount that your employer will match. You are, as they say, "leaving money on the table" if you don't. The company is basically handing you money toward your retirement.

It makes sense contributing to a 401(k) even without a company match, as tax advantage saving for retirement in any type or form is important and many times the suspended plans may not go away forever.  Many companies who had suspended or reduced plans during 2001 recession had reinstated  when the economy and their prospects revived.

So how about  work 4 days a week pay or layoff? That's a non brainer too..... times are tough.

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