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Originally Posted by divine1966
I just checked and I understand what you were saying. I had no idea that some states mandate participation in 401k or whatever they have 403b. Omg. I had no idea. What if someone has other retirement plans like big inheritance coming or what not. How could they mandate participation in retirement plan. My state doesn’t mandate it. I’ve learned something new today
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Exactly. My state mandates 401Ks. We aren't given an option to opt out of one when the employer includes it. That's a human resources decision (it's more money for the company to force employees to take 401Ks).
The IRS doesn't require companies to match 401K contributions. But employers take massive tax benefits PLUS they can hold your 401K hostage indefinitely (it's legal) b/c they collect tax benefits on it.
That's why they make it impossible for terminated or layed off employees to liquidate their own 401K plans. Why would a company let go of a continual stream of income from a previous employee? They won't because that 401K is a money maker for them.
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Originally Posted by divine1966
Omg 5000 deductible. Might as well not have insurance. Wow.
Well I don’t think 401k is a waste honestly. If they have a rep to talk to, you could discuss your options and maybe they would withdraw a very minimum. But I had years when I absolutely couldn’t afford to have any retirement withdrawals so I wouldn’t sign up for 401k.
You can roll your old 401k into new plans or combine those two together. It’s all a pain. Finances are a pain.
Yep that’s why many people work two jobs. It’s not manageable otherwise. What’s your Masters degree in (don’t have to answer), can it lead to a potentially better employment? Although I understand no matter what degrees one has, some fields are just not well paid, period
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That's my whole point. The only entity who makes money from the 401K is the company who is the 401K company, and the employer who collects tax benefits off of it in interest, like a bank collects interest on a loan. It doesn't benefit the person who has the 401K because they will NEVER see the money back deducted from their paycheck. That's all taken out under the guise of "fees" and "taxes." What the 401K does give is pennies on the dollar. It's worthless in my opinion.