4 ms·
A 401(k) match _is_ free money though. When you leave the company, you can just cash out the account - the penalty will still probably be less than the match ga
by piperswe 3y ago
A 401(k) match _is_ free money though. When you leave the company, you can just cash out the account - the penalty will still probably be less than the match gave you, so you come out ahead.
Of course, it's best to just let it sit in retirement accounts until you can take a qualified distribution.
- jacobr1 3y agoOnly in the sense that you can optionally not accept it. But it still is part of your compensation, as is in effect, even the "employer-paid" portions of healthcare and other benefits. From the perspective of the employer they are part of your costs and the direct payments reflect that, likewise you would need to pay those costs yourself if you were self-employed.
- Spivak 3y agoSo it's a semantic thing, employees know it's not literally free and comes from their employer but it's free in the sense that it's in excess of their negotiated salary.
- amluto 3y ago> When you leave the company, you can just cash out the account You can even get fancy and roll it over into an IRA and, if you have excess cash, convert it to a Roth IRA.