Schwab to Reinstate 401(k) Account Match

Charles Schwab Corp. said Tuesday that it would revive matching contributions to its employee 401(k) accounts next year, marking the latest sign of the discount broker’s renewed optimism after several years of penny pinching.

The San Francisco firm told its 16,200 employees of the move on the same day it reported another rise in trading activity as the stock market’s rebound lures back more investors.

Schwab said its customers made an average of 161,400 commission-generating trades a day last month, the highest since September 2001 and up from 156,000 in October.

The brokerage’s earnings plunged in 2001 and 2002 amid the bear market, forcing Schwab to make deep cost cuts. The firm estimated that it saved $48 million to $60 million by taking away the 401(k) match last year.

Schwab shares rose 20 cents to $11.10 on the New York Stock Exchange.