Mandatory 401K required

I learned this just last week.

Has anyone else heard that all employees will be required to have an IRA/401K??

I haven't looked into this but even as good of an idea to plan for the future that it is, why should someone else tell you what to do with your earnings?

 

IRS Approves Mandatory 401(k) Contributions, if Appropriate Notice is Provided to Plan Participants - FindLaw

 

As someone who's been contributing to a 401k since early adulthood, and fortunate enough to be vested into a pension plan on top of that, the idea of this makes me uneasy. There's always an ulterior motive...

 

Skeptical... that's silly. When? My son just started a new job and 401 is voluntary.


From that link: Last updated June 16, 2017

 

I'll be learning more about it but it'll be a few weeks.

 

Yep like changing tax laws, or just taking it in some form. If they force this thru, they need to force thru a livable wage than and for companies to have a match in place.
Lots of crap companies have 401k's that don't pay anything let alone match.

 

Sounds like another way for the government to have more money set aside that they will figure out a way to get their hands on.

 

I'm convinced they sit at these massive round table meetings that go something like this:
All this fiat money printing has increased cash flow, but has also increased the deficit. In order to keep making payments just to cover the interest on the monopoly money we "borrowed" from future generations, we'll need to squeeze the populace some more.
How much can we take?
I dunno, how much do they have?
We don't know exactly because too many people are saving cash on hand, especially in these uncertain times.
Okay, first we slowly get rid of physical cash by selling people on the idea of convenience. Then coerce them into saving under penalty of law!
But sir, what if people start reading the constitution and realize we've moved too far away from a system of self-governance and further towards a collective autocracy of controlling special interests?
Ah, I wouldn't worry about that, we phased out teaching about the constitution years ago! The only time that document is ever even mentioned is to take down political opponents or to grandstand in front of the cameras! Very few people suspect anything is amiss!

 

I spoke with a person in that said they are being given corporate wide training seminars for the mandatory participation.

They said they are not looking forward to all the endless questions and opposition to it once it begins.

Backwoods Savage , this is not a political thread. It is a notice that the money you earn is now regulated to be deposited somewhere whether you want it to be or not. People should be made aware of what is being mandated for them or against their wishes. Like you said in the last line of your post, "Whats yours is yours."


This is where I should have posted that today is the anniversary date of the "Shot heard around the World" or the beginning of the Revolutionary War.

 

That link says 3 percent if you don't opt out. You still have the chance to out, instead of electing to participate. The old government is probably figuring that 3 percent invested over a career will allow less people in the future will have to work till they die and allow younger people to move up in the work place easier.

 

My company did that with the 3%, they can't even give raises to offset inflation before it went thru the roof. They can't even pay a good wage.
I opted out in December and the MF'ers put me back on 1-1. I didn't look at my deductions for a month and finally saw they opted me back in.
To say I was ticked was an understatement, I don't plan on retiring from this pos company and I sure in the hell don't want to deal with xferring
a 401k over or even dealing with that BS. I'm totally with you backwoods with messing with my money.
Not against 401k's they are good but imo only if you plan on staying with said company and you already make a good livable wage.
I don't fall in that category, doubt I ever will again.

 

I disagree. Whether you plan on working at a place for 20 minutes or 20 years, put money in the 401K, especially if there is a match. How long you plan on working there should no impact on your decision to participate in the plan. Transferring from a previous employer's 401K to a rollover IRA is a super easy process. I've done it a few times and it never took more than 20 minutes.

As for mandatory contributions, I believe there are very few things in life that should be mandatory (mandated by federal/state/local governments)....and this certainly isn't one. If a private employer wants to mandate it, that's their decision....and it's your decision to work there or not.

If everyone were given more liberty and took more ownership over their decisions/actions rather than be mandated or legislated the world would be a far better place.

 

I see it differently than most . Although I don’t collect SS yet I was “ mandated “ to pay into the system as most of us were while I was working . Police are one group that’s exempt from SS I believe . I’m sure many on here collect SS and are now glad they didn’t have the choice to opt out .
I was also mandated to pay into my retirement system with no choice to opt out . Glad I did as well .
I hate putting labels on a group but down the road the SS system may or may not be around . The younger generation of workers that I know seem to be in a spend it now mode and who cares about the retirement time . Maybe this is a good thing and help some have some future moneys saved away . There’s probably some exceptions as well that will let the individuals access the money early for “ emergencies “. I believe my 457 had that as well and if I recall it was mostly for health reasons.

 

Look into Dodd-Frank Act. It allows for taking a large percentage of accounts, checking, savings, IRA, 401S, ect to sure up the banking. The answer to not need government bail outs like happened years ago. Now they will take your accounts and have bail in, with your $.

 

The biggest influence on me to start a 401k were my older coworkers. I remember being told explicitly that the earlier I started, the better off I’d be. This was coming from guys that became millionaires in their late 40s to early 50s too. I put a lot of merit on what they all said. 401k’s although not protected, are (probably) more of a sure thing than banking on social security being there when you need it. I remember hearing talk 20+ years ago about how the “mandatory” social security payments I was making may or may not be there for me when I retire. If I was a young lad again just entering the workforce, hearing all this talk about national debt/social security/mandatory 401k’s…. The last thing I’d want to do is trust “the system” with my financial livelihood when I’m entering my retirement years. At that point what’s it going to be? 974 trillion in debt? A lot of us try to do our best to be fiscally responsible and yet the biggest offender for fiscal irresponsibility is (you know what!) that incidentally thinks it knows better for us than we know for ourselves

 

SS will be around, for as long as everyone is required to involuntarily paying into it. I, like most others that have been paying into it all of my adult life, would be furious if for some reason we were told we wouldn't get to reap the benefits when we are able to. Not without she lump sum payment of sorts. There would be revolts, lawsuits etc. Just imagine the fallout. Due to that, SS will always be around for those that paid into it.

 

Maybe at certain companies by a company policy?

I think if that was was passed on a national scale we would all of heard about it!

 

Could very well be the case.

 

The reason why I saw what I do is that it's NOT even mandatory for federal employees!!! The Feds contribute 1% automatically to your TSP (basically a government sponsored and run 401k) but you as an employee are not required to contribute any funds. It's kind of stupid since it's pretax money and they will match up to another 5% if you contribute so your throwing away money if you don't.