IBM recently announced an upcoming change to their 401(k) plan.  They will no longer be making their matching contributions twice a month, in keeping with their participants’ contributions.  Instead, IBM will join the ranks of the less than 10% of 401(k) plan sponsors who make a once a year match contribution.  If an IBM employee contributes to their 401k account but their employment with IBM is terminated, either voluntarily or involuntarily, before December 15, they will not receive the company match on December 31.

What do you think of the once a year company match? Will this become a new trend for 401(k) plan sponsors?