Financial advice needed, please help...

[Night_Nurse]

I've just been hired for a new job with a company that offers a retirement savings plan for employees - well, they don't exactly offer it - if I do "nothing" within 30 days of my hire date, I then become a member of the plan automatically. Once I become a member, I can't elect to stop being a member until if/when I terminate employment w/this company. I can opt-out of the plan by giving them written notice within the 30 days, but it is with the understanding that once I opt out, I will "NEVER again have the opportunity to elect to participate while I am an employee of ____ Company."

The details: My pay will automatically be reduced by 2% up to the Soc Security Taxable Wage Base (SSTWB), and by 4% of pay over the SSTWB. _____ Company will contribute an annual amount equal to the amount taken out of my base earnings, plus an additional 2.5% of pay up to the SSTWB and 5% of pay over the SSTWB, to an account for me under the plan.

(I'm in my early 40s, and will be starting at a base pay of approx $50k/year. I have no retirement savings - I've spent the past few years working towards the goal of finishing school, in order to give myself and my kids a better life - and hopefully a "nest egg".)

Anyway, I'm not sure what those numbers will mean for me (sorry, math/finance are NOT my forte'). What do "up to the SSTWB" and "over the SSTWB" mean? The plan sounds good, but I don't completely understand it - and I don't like the idea that I have to decide within 30 days to opt-out, and once I decide - my decision is final. Where does my money go when it's taken out of my check? Investments? A bank? Is it like a tax-shelter? In light of the current economic crisis, I'm nervous about letting them do that - even though they say that they are going to match the funds (this is a large, reputable company, so I trust their word - it's the market and economy that I don't trust.)

Any sage advice will be MUCH appreciated!

Thank you :hi: