If your employer signs you up for a retirement account automatically....?

Question

and you cancel it after a few weeks, and then you quit that job later on, can you get that money back or is it in that account forever or what?

they sent me a statement saying I have 60 dollars in there. how would I go about adding to it down the road?

Answer 1

Most employer-sponsored retirement plans require you to keep the money in their plan while you are still employed there (unless you take a loan from your account --BAD IDEA). If/When you quit you have the following options with your money: leave it alone, roll it into an IRA, move it to another employer plan, or cash it out (another BAD IDEA -- penalties and taxes will apply).

Different companies have different rules about how much money you need to have in the account to keep it open when you quit. Chances are, if you only have $60 when you quit, the plan adminstrator will close your account and send you a check. Be proactive and ask what your company's procedures are.

Answer 2

You can take your money out at anytime, but doing so requires you to pay federal and state taxes on it, plus a 10% penalty. There are several exceptions to the 10% penalty:

- You are 59 1/2
- You had a "direct rollover" to your new retirement account,
- You received a lump-sum payment but rolled over the money to a qualified retirement account within 60 days,
- You were permanently or totally disabled,
- You were unemployed and paid for health insurance premiums,
- You paid for college expenses for yourself or a dependent,
- You bought a house,
- You paid for medical expenses exceeding 7.5% of your adjusted gross income, or
- The IRS levied your retirement account to pay off tax debts.

If it all possible, keep the money in the account and enjoy having a start towards retirement!

Answer 3

You need to do a rollover IRA.

Contact the Payroll Department for a Rollover IRA form because chances are you can NOT make any contributions after termination from the employer.

E-Trade, Fidelity, and Sharebuilder have great IRA rollover accounts. For $60 -- Sharebuilder is your best bet!

Answer 4

Yes, whatever money that was deposited into the retirement acct that came from your paycheck, it is yours. But there could be a penalty if you withdraw the amount. Each retirement company works different...they may require you to roll that money out into another fund outside of their company. I recommend you call the former employer to attain the phone number of the retirement fund company to ask for their withdraw options.

Answer 5

In order for the question to be answered properly, it depends on what type of account you have. There are several retirement vehicles, including IRA's, 401K's, annuities, 403(b)'s, and more.
In order to know what happens to the money, you need to find out what kind of account you have. Then we can figure out how to best help you.

Answer 6

Don't be afraid to ask that employer. I would believe that since you cancelled it after only a few weeks there's nothing. Check to be sure.

Answer 7

retirement account, also known as an IRA is a healthy thing to have no matter your age.

Personally I would leave it and slowly add more n more too it, this is money that is put away and collects interest and dividends over time so you have money later on in life.

Answer 8

let it set and grow and if you change jobs just bring it with you