General Discussion

A HERETIC I AM

(24,908 posts)

15. 401(k)'s are portable.

Tue Jul 1, 2014, 01:29 AM

Jul 2014

When the OP leaves the firm, they can easily (OK...it takes a bit of effort, but it isn't difficult) move these funds to a new 401(k) at their next job with no penalty whatsoever and no fees. They could also roll it to an IRA if they desired.

The OP also said it was 3% of their gross. That's peanuts and I find it hard to believe 3 bucks per hundred would really be missed. Not to mention it reduces the Adjusted Gross Income and therefore reduces the tax burden.

There has been an awful lot of lamenting the 401(k) system on DU and some of it is justified. But misinformation helps no one. And if you have a chance to save a bit in a way that is basically painless, why not do it, regardless for how long it is?

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"Automatic" 401K enrollment & deductions [View all] BuelahWitch Jun 2014 OP

Ooh, they might invest in things you object to on religious grounds. MohRokTah Jun 2014 #1

Hm, that's an idea BuelahWitch Jun 2014 #2

"Most of all I object to them taking money out of my check" - TBF Jul 2014 #43

I think it's more like paying your Wall Street dues. n/t mattclearing Jul 2014 #27

Or, like every Fidelity account, they don't invest in anything... brooklynite Jul 2014 #80

Before you do that Demobrat Jun 2014 #3

Nope, no match BuelahWitch Jun 2014 #4

Well it still can't hurt to save for retirement when you have the chance. Demobrat Jun 2014 #5

Actually, It really can quakerboy Jul 2014 #24

or you roll it over into an IRA Travis_0004 Jul 2014 #29

no - the account can be rolled-over to an IRA - with another financial institution if DrDan Jul 2014 #31

And it stays tax sheltered when you roll it over into an IRA eallen Jul 2014 #64

Lots of companies have moved to passive enrollment abbeyco Jul 2014 #6

My husband started with a new company LibDemAlways Jul 2014 #7

I know they passed the law back in 2006 BuelahWitch Jul 2014 #8

Oh, for crying out loud A HERETIC I AM Jul 2014 #11

Since the job isn't supposed to last long, I would definitely question being "automatically enrolled MiniMe Jul 2014 #14

401(k)'s are portable. A HERETIC I AM Jul 2014 #15

Painless for you, maybe BuelahWitch Jul 2014 #21

So....the difference between $100 and $97 is a deal breaker for you? Is that it? A HERETIC I AM Jul 2014 #50

So you worked for the Wall Street Casino? BuelahWitch Jul 2014 #58

See? Right there. That bullshit response is exactly what I expected. A HERETIC I AM Jul 2014 #61

I give back what I get BuelahWitch Jul 2014 #73

Everything you say is true; however, on principle I would argue against compulsory association. Nuclear Unicorn Jul 2014 #33

As Skittles said in post #19 below.... A HERETIC I AM Jul 2014 #54

It's hard to argue with you when everything you say is true. Nuclear Unicorn Jul 2014 #60

You have to opt out of many things Lurker Deluxe Jul 2014 #66

Are you sure about that? quakerboy Jul 2014 #25

her contributions are 100 hers Travis_0004 Jul 2014 #30

employer contributions may or may not be "yours" based on the vesting requirments DrDan Jul 2014 #34

This message was self-deleted by its author A HERETIC I AM Jul 2014 #37

oops - meant employer contributions - will change it DrDan Jul 2014 #39

Fair enough. n/t A HERETIC I AM Jul 2014 #40

Yes I am quite sure. A HERETIC I AM Jul 2014 #38

Most people go with the default option mythology Jul 2014 #9

401k vadermike Jul 2014 #10

I understand that. I would still like to make my own decision BuelahWitch Jul 2014 #12

No one shoud be put in the position of having LibDemAlways Jul 2014 #13

No, it's not. A HERETIC I AM Jul 2014 #16

I stand corrected. I have nothing against LibDemAlways Jul 2014 #17

they tried that and it did not work Skittles Jul 2014 #19

Indeed, the US Department of Labor even encourages automatic enrollment plans... PoliticAverse Jul 2014 #26

they could be taking cues from Australia Skittles Jul 2014 #28

Automatic enrollment isn't designed to benefit people who aren't saving for retirement. Gormy Cuss Jul 2014 #47

I'm not an idiot Skittles Jul 2014 #69

I don't believe that I called you an idiot. Gormy Cuss Jul 2014 #70

Thank you! n/t BuelahWitch Jul 2014 #74

BuelahWitch, find out what the company match is Skittles Jul 2014 #18

There is no company match BuelahWitch Jul 2014 #20

why all the outrage? This is not uncommon - simply opt-out. DrDan Jul 2014 #22

This is DU, it runs on outrage n/t BuelahWitch Jul 2014 #42

well . . . you have a good point there DrDan Jul 2014 #53

Yes many companies do that, but a lot of companies do not. They should NOT automatically enroll you lostincalifornia Jul 2014 #52

I really have no problem with it . . . DrDan Jul 2014 #56

I was surprised it was legal too BuelahWitch Jul 2014 #57

My employer madville Jul 2014 #23

5% is a nice match. badtoworse Jul 2014 #46

The match was put tree when the pension was reduced madville Jul 2014 #65

Is there an employer match? Don't opt out until you know. badtoworse Jul 2014 #32

apparently there is no match, per posts above, however, there are still tax advantages DrDan Jul 2014 #35

You don't need to sell me on 401k's. I'm a big believer badtoworse Jul 2014 #44

You have to sign a statement officially opting out HockeyMom Jul 2014 #36

Never had to do this BuelahWitch Jul 2014 #41

Just out curiosity, how are you set up for retirement? badtoworse Jul 2014 #45

I know how much this sucks tech3149 Jul 2014 #48

Yeah, too bad you don't have a pension (lol) cbdo2007 Jul 2014 #49

Actually I do have a pension BuelahWitch Jul 2014 #59

Hope it remains fully funded Lurker Deluxe Jul 2014 #67

Frankly, I don't know that I'll live to see any of it BuelahWitch Jul 2014 #75

A lot of companies do that, and it is not right. I am surprised that practice is legal. Yes, you lostincalifornia Jul 2014 #51

I did, first thing this morning. BuelahWitch Jul 2014 #55

Actually, the reason they do "Automatic" nowadays is because a lot of people that could benefit from Xyzse Jul 2014 #62

Translation: Saving for retirement sucks because I need to buy some Big Gulps and Chalupas today. FSogol Jul 2014 #63

No, translation: thirty dollars a paycheck buys me gas for my old car and some groceries BuelahWitch Jul 2014 #72

$30 a paycheck just might save your ass when you get old. It also reduces your tax burden. FSogol Jul 2014 #76

Apples and oranges BuelahWitch Jul 2014 #78

Agree. n/t lumberjack_jeff Jul 2014 #77

been there. at my call center job, I had to opt out of an automatic 401k magical thyme Jul 2014 #68

That's terrible BuelahWitch Jul 2014 #71

Thanks to those who were nice to me even if you disagreed with my post BuelahWitch Jul 2014 #79