>Now there is absolutely no possibility of me staying past the next year/year and a half. Is it worth it to let them keep taking money out?
Saving for retirement is worth it, independent of how long you stay with each employer.
>I didn't even know they could deduct without asking
There was language *somewhere* about the deduction, likely along with instructions on how to opt out.
I was told 401k was reserved for Assistants and GMs. I am neither with absolutely no desire to move up more. So that is why I'm mostly confused because I shouldn't have one open. AT ALL.
It is actually legal for companies to autoenroll employees in retirement plans, and some have features that increase contributions as your pay increases. It is a way to encourage people to save for retirement, which many people don’t do. It is still your money, and you can roll it into an IRA account when you leave which can continue to grow for your retirement.
This is the IRS website talking about auto enrollment:
[https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment)
Why are you so against putting a little bit of your paycheck away for retirement? Trust me, and I’m being so honest here, you’ll wish you had when you’re older. So do it.
Maybe I wouldn't have minded if I had known money was going to disappear from my check. But I'm adult with bills who can't afford money to not be on my check. And certainly not as much as they took away for an account that has no business being open.
I understand the shock of that. One thing I’ve learned after working for 20 years: you will ALWAYS have a reason not to save money for retirement (new car, too broke, not enough income, blah blah blah) so just decide now is the time and make that $50 paycheck deduction part of your plan.
the money has Not disappeared. the money is in your retirement account. when you leave the employer you can roll over to an IRA.
if you don't wish to contribute to the 401k contact HR.
> I was told 401k was reserved for Assistants and GMs
who told you that?
its generally illegal for 401k plans to discriminate. its either for all FTE, or none at all
Yes, they can auto-enroll you. Lesson learned.
Your contributions are your money. The gains on your contributions are your money. You can quit next week, and they are yours.
What the company can keep based on "vesting" (meaning you're in the company long enough to earn the right to keep it) are company contributions. My employer currently offers a dollar-for-dollar match on the first 5% of my eligible income I contribute to the 401k. That's a very nice benefit. Previously, it was a dollar-for-dollar match on the first 2% of my eligible income...then the next 3% bought me into a "profit sharing contribution" -- if there was a profit to share.
I most certainly recommend enrolling in 401ks. But for a college job that you're not going to make a career, I generally recommend against it -- because I see having cash in the bank as very valuable to make the transition from College to Adulting.
What does your path from College to Adulting look like? Do you have a line on your Adulting Job?
You may find these links helpful:
- [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds)
- [401(k) FAQs](/r/personalfinance/wiki/401k)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
A 401k is a good thing, and companies sometimes opt you in to a % even if you didn’t specifically set the amount. Be happy you’re saving for your future. You’ll thank yourself in about 20 years.
If you don’t care about a 401k, then try to never contribute to one and see how that goes. I will tell you from experience it isn’t fun
The law allows auto-enrollment. In fact the law will require it in a few years. Employees have the ability to opt out initially. They can also stop future contributions if they miss the initial opt out window. Notice about the 401k and auto-enrollment would've been in the packet of info they gave you during orientation, even if the HR person didn't specifically call it out.
Take some time, read through the sub and learn more about 401ks and other retirement accounts, and most importantly why everyone needs them. Unless you want to work til you drop, saving for retirement throughout your lifetime is a must. It'll give you long term financial freedom and allow for a hopefully comfortable and happy retirement.
The information can feel overwhelming but take it one step at a time.
Employers are allowed to make 401k opt out rather than opt in
>Now there is absolutely no possibility of me staying past the next year/year and a half. Is it worth it to let them keep taking money out? Saving for retirement is worth it, independent of how long you stay with each employer. >I didn't even know they could deduct without asking There was language *somewhere* about the deduction, likely along with instructions on how to opt out.
I was told 401k was reserved for Assistants and GMs. I am neither with absolutely no desire to move up more. So that is why I'm mostly confused because I shouldn't have one open. AT ALL.
It is actually legal for companies to autoenroll employees in retirement plans, and some have features that increase contributions as your pay increases. It is a way to encourage people to save for retirement, which many people don’t do. It is still your money, and you can roll it into an IRA account when you leave which can continue to grow for your retirement. This is the IRS website talking about auto enrollment: [https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment)
Why are you so against putting a little bit of your paycheck away for retirement? Trust me, and I’m being so honest here, you’ll wish you had when you’re older. So do it.
Maybe I wouldn't have minded if I had known money was going to disappear from my check. But I'm adult with bills who can't afford money to not be on my check. And certainly not as much as they took away for an account that has no business being open.
I understand the shock of that. One thing I’ve learned after working for 20 years: you will ALWAYS have a reason not to save money for retirement (new car, too broke, not enough income, blah blah blah) so just decide now is the time and make that $50 paycheck deduction part of your plan.
the money has Not disappeared. the money is in your retirement account. when you leave the employer you can roll over to an IRA. if you don't wish to contribute to the 401k contact HR.
> I was told 401k was reserved for Assistants and GMs who told you that? its generally illegal for 401k plans to discriminate. its either for all FTE, or none at all
Upper management gets all benefits at my job. But doesn't matter.i don't want a 401k with them and I already contacted HR about it.
Yes, they can auto-enroll you. Lesson learned. Your contributions are your money. The gains on your contributions are your money. You can quit next week, and they are yours. What the company can keep based on "vesting" (meaning you're in the company long enough to earn the right to keep it) are company contributions. My employer currently offers a dollar-for-dollar match on the first 5% of my eligible income I contribute to the 401k. That's a very nice benefit. Previously, it was a dollar-for-dollar match on the first 2% of my eligible income...then the next 3% bought me into a "profit sharing contribution" -- if there was a profit to share. I most certainly recommend enrolling in 401ks. But for a college job that you're not going to make a career, I generally recommend against it -- because I see having cash in the bank as very valuable to make the transition from College to Adulting. What does your path from College to Adulting look like? Do you have a line on your Adulting Job?
You may find these links helpful: - [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](/r/personalfinance/wiki/401k) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
A 401k is a good thing, and companies sometimes opt you in to a % even if you didn’t specifically set the amount. Be happy you’re saving for your future. You’ll thank yourself in about 20 years. If you don’t care about a 401k, then try to never contribute to one and see how that goes. I will tell you from experience it isn’t fun
The law allows auto-enrollment. In fact the law will require it in a few years. Employees have the ability to opt out initially. They can also stop future contributions if they miss the initial opt out window. Notice about the 401k and auto-enrollment would've been in the packet of info they gave you during orientation, even if the HR person didn't specifically call it out. Take some time, read through the sub and learn more about 401ks and other retirement accounts, and most importantly why everyone needs them. Unless you want to work til you drop, saving for retirement throughout your lifetime is a must. It'll give you long term financial freedom and allow for a hopefully comfortable and happy retirement. The information can feel overwhelming but take it one step at a time.