If an employee who contributes to the company's 401k plan quits, is a 401k deduction made on the last paycheck?
2006-09-05 10:28:16 · 5 answers · asked by Jeffery C 1 in Business & Finance ➔ Investing
Yes, if it's a regular paycheck.
But be aware, if you have any 401K loans, they will become due shortly after quitting.
Also, you'll have to decide what to do with your 401K. Since that might be your next question, I'll answer it here. You're best off rolling your 401K into a self directed IRA. You have more control over the holdings and you won't get bogged down with as many of the extra fees inherent in 401Ks. Although it'd be best for you to trade your own acct, you do not necessarily need to do so.
You can keep things the same if you want, simply by putting the same mutual funds (or better yet ETFs and other indexes) into your account to achieve the same, or better diversification as you had with your 401K. You can do even better by learning a little about the market and putting a little higher % in the stronger sectors as institutional money moves into them. IBD.com, or many other tracking sites can/will help with this.
Hope this helps!
2006-09-05 11:21:20 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
Yes
2006-09-05 11:19:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Sure.
The deductions would only change if the employee adjusted them.
2006-09-05 11:20:10 · answer #3 · answered by derek 4 · 0⤊ 0⤋
Yes, because he did not instruct the HR department to change anything before he quitted. So it is dtill effective
2006-09-05 19:57:13 · answer #4 · answered by Hoa N 6 · 0⤊ 0⤋
If it is a regularly scheduled 401(k) payroll deduction, yes.
2006-09-05 10:30:17 · answer #5 · answered by SuzeY 5 · 0⤊ 0⤋