You are uneasy that your company may go bankrupt and that you will lose all the dough in your 401(k).

Confirm that your money was sent from your head to your 401(k) plan and you have nothing to worry about. Hard cash you invest in a 401(k) is your money, not your employer’s. Your guv hires a third party typically a brokerage, fund company, or warranty company to run the 401(k), and that company in turn segregates your currency in a separate account that is all yours; even if that brokerage or wealth company got into trouble.

You have employer matching contributions that are not fully vested and you are upset that you may lose this money if your company goes bankrupt.

That could definitely happen. Money that is not vested is not yet yours. So in the event your following goes under, it is not legally obligated to leave the unvested portion of your bout in your account. The money you contribute to your 401(k) is always 100 % yours.

Your company announced it will suspend its 401(k) matching contributions in 2009. Should you preserve contributing to your 401(k)?

Because you are not going to get the matching contribution, you hunger for to be strategic about how best to use your money. If you have credit membership card debt, suspend your 401(k) contributions so you have more lolly in your paycheck to put toward paying off your credit card preponder. If you do not have credit card debt but you do not have an eight-month predicament fund, make sure you create a savings fund before you do anything else. If you from no credit card debt and you have an eight month emergency means, then I suggest you suspend your 401(k) contributions in 2009 and as an alternative if you qualify invest in a Roth IRA account. If you don’t qualify, invest in a traditional IRA. If you already take funded your Roth or IRA, then just keep taking that appurtenance money to pay down the mortgage on your home if you plan to stay in that lodgings forever or keep contributing to your 401(k); even without the attendance match, it remains a smart way to save tax-deferred for your retirement.

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