the company I work for just sent me a letter saying I am now eligible for 401k and that I must attend the meeting about it. I am only 21 have worked their a year and a half and work their part time. its not a place I want to work the rest of my life. so should I really sign up for it?
2006-12-01 03:20:04 · 8 answers · asked by mrniceguy 2 in Business & Finance ➔ Careers & Employment
Of course! It's never to early to start saving for retirement :-) Just think about it... the earlier you start saving the healthier your retirement account will be when you retire.
2006-12-01 03:37:28 · answer #1 · answered by joencrystal 3 · 0⤊ 0⤋
Yes, you should sign up. If they have a matching amount, you should begin by putting in enough to receive the match. The younger you are when you start saving, the better off you will be. If and when you leave this job, you can roll the 401K into an individual IRA or another 401K, so you can't loose the money. Saving is always a good thing.
2006-12-01 03:24:05 · answer #2 · answered by deep5223 4 · 0⤊ 0⤋
Yes. I did for my first job when I was 22. When I left the job, my 401K money rolled into a Roth account. I got to pick which bank I wanted to open a Roth account with. My money is sitting in the bank collecting interest. I'm glad I did it because the company I work for now does not have a 401K. My current boss was going to try to set something up, but it's a small company and would cost him too much money. But, I can add money to my Roth account anytime on my own. So, I have to save up my own money my own way but at least it's all set up for me.
2006-12-01 03:43:29 · answer #3 · answered by ☆skyblue 7 · 0⤊ 0⤋
ABSOLUTELY!! Put in as much money as you can. It is completely tax free money at this point in your life. The most important thing though is when you do leave the company make sure you transfer your 401K into a IRA. Any major brokerage can help you with this.
2006-12-01 03:27:54 · answer #4 · answered by AirDevil 4 · 0⤊ 0⤋
Always join a 401k if eligible, especially at your age. When you change jobs you can usually transfer or rollover the balance in your 401k. NEVER withdraw it early because it will cost you a lot in extra penalties and taxes.
2006-12-01 03:25:22 · answer #5 · answered by JayZ 2 · 0⤊ 0⤋
YES
If you are not making much money you may even get a tax credit for contributing to your 401k. You should definitely contribute enough to get any company match(even if it does not vest right away).
It is true that retirement is very far off, but the sooner you get started the easier it is to save enough.
2006-12-01 03:23:06 · answer #6 · answered by VATreasures 6 · 0⤊ 0⤋
Absolutely, if you can afford to have a small amount take from your check (pretax), say 2-3% and especially if your company matches. I wish I would have started a 401k when I was your age. You can just roll it over when you move on to a new place.
Good Luck!
2006-12-01 03:25:02 · answer #7 · answered by LifesAMystery 3 · 0⤊ 0⤋
only if they have a Roth 401(k) option.
Otherwise, open a Roth IRA.
It'll pay off down the road.
2006-12-01 03:28:35 · answer #8 · answered by jinenglish68 5 · 0⤊ 0⤋