Employers cutting 401(k) matches

On top of the declining value of their investments, employees depending on 401(k) plans to build retirement nest eggs are getting another shock courtesy of the economic meltdown.

According to a survey by accounting firm Grant Thornton, 29% of companies have reduced or intend to otherwise modify their contributions to employees' 401(k) accounts. Of those employers, two-thirds have eliminated matching contributions altogether.

Large employers were more likely than small employers to change plans. In particular, technology, retail/trade, and ironically, the financial services/banking sectors were the most likely to cut contributions.