More than a third, 38%, of 401(k) plan sponsors are making all or part of their matching contributions in company stock, according to a new survey of nearly 300 companies by Hewitt Associates.
Of respondents that make company stock matching contributions, 86% place some type of restriction on selling it. However, 62% indicate they have eased or are easing existing restrictions on diversification of company matching contributions out of the company stock fund this year.
Ninety-two percent of sponsors said they will not reduce the employer matching contribution or are unlikely to do so, while another 5% are uncertain. Eleven percent of employers indicated they already have increased their company matching contributions this year.
