401(k) Tax Breaks Boost Retirement Savings' Growth Potential.(SERIES: FUNDS & PERSONAL FINANCE)(IBD SPECIAL REPORT)(TAXES)

Byline: PAUL KATZEFF

For many workers, a chill is in the air. And it's not because autumn's near.

Newspaper headlines have trumpeted the frosty fact that El Paso, Charles Schwab and Textron killed or cut matching contributions to their 401(k) plans this year. General Motors started this trend in 2001, as the bear market and wintry economy deepened.

But broader trends are more encouraging. Member participation, contributions and company matches are edging upward, according to various surveys.

That good news is especially timely this week. Sept. 2 was National 401(k) Day.

Some of the trends reflect decisions made by workers a year or more ago.

They were based on hardnosed …