# 401k



## Almost Retired (Sep 14, 2021)

more likely it is standard for all employees after the trial period is over
just a normal benefit everyone gets
if that is the case then at least you passed the trial period


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## SWDweller (Dec 9, 2020)

Depends on if they have matching funds. I have worked at company's did and did not match.

The title 401k means there is a retirement program. Which can help you in later years.
You must work a min of 5 years before you can touch it. Get laid off 4 years 11 months and 2 weeks and you loose it all, maybe.
The real subject you want to know is who is in charge of the money? I prefer self directed rather than the company using the 401k as a bank for operational funds. Lotys of ins and outs, go see a tax person where you are for more specific information.


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## gpop (May 14, 2018)

Many years ago company's were expected to offer a pension plans. Well that costs a company's money especially when they badly invest the fund or someone simply stole it. (happened a lot)
So company's dropped pension plans which caused the government to step in as they had already spent your social security and had no plans on paying that money back. 

So large company's were forced to either join a state sponsored pension fund or supply a private pension fund for their employee's. Notice it say's supply not contribute also note there is a requirement that x amount of employee's must be enrolled in a private pension plan or they have to use the state sponsored one. 

Well that lead to the 401k employee pension fund which is a private investment (you pay the fee's). Company's will either tempt you to join the 401 scheme with matching contributions or simply keep trying to force you to join it through auto enrollment. 
You can leave the pension fund at any point and any money you payed in is yours but there may be loop holes concerning the money the company payed in. If you cash out you will get hit with huge penalties and taxes as 401k contributions were tax free. You can also transfer a 401k fund to a new jobs 401k plan tax and penalty free.

So does a 401k equal job security. Hell no they need you to join it as they do not want to deal with a state sponsored pension plan.

The one thing i do like about my 401k is being able to borrow against it in a hurry. Recently i borrowed 10k against it as dealing with a bank during covid was a nightmare where 401k was a quick phone call and the check was delivered the next working day. The interest i pay goes into my account as it was my money i borrowed.

If the company matches you would be a fool not to take there money.


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