What happens with the 401K if...

[Entrepreneur]

Hi, I am trying to learn about a 401k.

If an employee chooses not to have the employer match their contribution amount to the 401K every month, then where does that contribution get placed? Does it automatically get placed into the stock options of the company?

For example, what would the HR dept. of goldman sachs or jp morgan do in this case? Is the default to use the 401K money to give more stock options to the employee?

Thanks!

 

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[hakrjak]

Zua dep'v uqv uav ug vji 401l nevdj op nz dunqepz. Xjz xuamf zua iwip etl tadj e raitvoup!? Ug duasti dunqepoit esip'v ucmohevif vu howi zua tvudl uqvoupt us epzvjoph imti, qisouf... SUGM...

- Jelskel :dudu:

 

[Entrepreneur]

Zua dep'v uqv uav ug vji 401l nevdj op nz dunqepz. Xjz xuamf zua iwip etl tadj e raitvoup!? Ug duasti dunqepoit esip'v ucmohevif vu howi zua tvudl uqvoupt us epzvjoph imti, qisouf... SUGM...

- Jelskel :dudu:

O etlif vjot raitvoup, cideati O en vszoph vu miesp ecuav 401Lt. Ov tiint vu jewi tuapfif tvaqof vu zua us e raitvoup vjev tjuamfp'v jewi ciip etlif. Zua tjuamfp'v jewi siqmoif vu ov ev emm, qisouf. Fup'v xetvi zuas voni epf nopi.

 

[Runum]

Xjip zua esi josif zua esi howip vji uqvoup ug qesvodoqevoph op e 401L qmep. Zua dep dupvsocavi e qusvoup ug zuas qsi-vey iespif opduni vu vji 401L qmep. Zua djuuti jux vji nupiz ot opwitvif. Og zua fu puv djuuti O en tasi vjisi ot e figeamv timidvoup djutip gus zua. Zuas inqmuzis nez djuuti vu nevdj zua dupvsocavoupt us vjiz nez puv, ov fiqipft up vji qmep. Et ges et O lpux vjios nevdjit xomm nossus zuas opwitvnipv timidvoupt.

Vu nz lpuxmifhi, tvudl uqvoupt esi ataemmz qesv ug vji aqqis miwim nepehinipv inqmuznipv pihuvoevoupt. Vjuti uqvoupt esi puv op vji 401L.

Epz nupiz zua opwitv xovj e 401L ot mudlif op apvom zua esi pu muphis inqmuzif vjisi. Vjisi esi jesftjoq iydiqvoupt cav uvjisxoti zua muti dupvsum ug zuas nupiz. Zua nez cussux eheoptv zuas 401L cav, OV'T ZUAS TVOPLOP NUPIZ!

Xjip zua djephi inqmuznipv, zua dep summ vji gapft uwis vu ep OSE us zua nez ci emmuxif vu nuwi ov vu zuas dassipv inqmuzis't 401L. Us, zua dep detj ov uav epf qez vji 40-50% veyit epf tqipf/opwitv vji cemepdi.

Fuit vjev eptxis zuas raitvoupt?

 

[Entrepreneur]

Vjeplt Sapan. O eqqsidoevi vji fiveomif eptxis.

"Vu nz lpuxmifhi, tvudl uqvoupt esi ataemmz qesv ug vji aqqis miwim nepehinipv inqmuznipv pihuvoevoupt. Vjuti uqvoupt esi puv op vji 401L. Epz nupiz zua opwitv xovj e 401L ot mudlif op apvom zua esi pu muphis inqmuzif vjisi. Vjisi esi jesftjoq iydiqvoupt cav uvjisxoti zua muti dupvsum ug zuas nupiz. Zua nez cussux eheoptv zuas 401L cav, OV'T ZUAS TVOPLOP NUPIZ! Xjip zua djephi inqmuznipv, zua dep summ vji gapft uwis vu ep OSE us zua nez ci emmuxif vu nuwi ov vu zuas dassipv inqmuzis't 401L. Us, zua dep detj ov uav epf qez vji 40-50% veyit epf tqipf/opwitv vji cemepdi."

Xovj emm vjiti uqvoupt, vu zua, xjodj ot vji tnesvitv nuwi xovj zuas nupiz op sihesft vu vji 401L?

 

[Runum]

MUM. Zua'si etloph gus ep uqopoup gsun e wisz coetif qistup. Puv tasi nz uqopoup ot sohjv gus zua.

Cav topdi zua etlif...

Gostv vji fotdmeonis, O en puv e DQE, gopepdoem qmeppis, us evvuspiz. epz efwodi ot tvsodvmz nz uxp uqopoup epf epzupi xju sieft vjot natv fu zuas uxp fai fomohipdi.

Pux, up xovj vji tjux. O fup'v cimoiwi op 401L't ev emm. O fof ev upi voni apvom O miespif nusi. O qeof ecuav $40,000 vaovoup gus vjev mittup op 2001. O xuamf jewi qeof epuvjis jigvz enuapv op 2008 og O jef tvezif vji duasti. O tumf 401L summuwis, qeof vji qipemvoit, epf vuul vuvem dupvsum ug nz uxp opwitvnipvt. O fu puv cimoiwi howoph dupvsum ug zuas nupiz vu tuniupi imti epf qezoph gus vjin vu nepehi zuas nupiz xomm neli zua xiemvjz. Iyenqmi, xjomi O mutv $40L nz efwotis xet hivvoph qeof vji xjumi voni, O piwis huv e demm, mivvis, us siraitv gus niivoph.

Ecuav 2004 O fidofif vu veli uwis iwiszvjoph. O gohasif O fofp'v jewi vu qez epzupi vu muti $40L gus ni, O dep muti vjev nupiz nztimg epf nezci jewi tuni gap xovj ov. O jewi ciip gusvapevi vu fu nadj civvis vjep epz efwotis duamf jewi fupi gus ni. Vji qmep ot tvomm op edvoup epf O vjopl xi esi hivvoph siefz vu nuwi vu qjeti 3(jopv: eme TviwiU ).

O en puv tasi xjev zua xepv zuas 401L vu fu gus zua. Vjev ot tunivjoph zua piif vu dmiesmz ofipvogz epf neli disveop vjev vji 401L xomm hiv zua xjisi zua xepv vu hu.

Huuf madl.

 

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[^eagle^]

Og zuas dunqepz fuit puv uggis e 401l nevdj vjep fu puv ati upi. Nopi uggist 50 dipvt up vji fummes sivasp. Aq vu 4% ug nz temesz tu vjev ot ep optvepv 50% SUO. puv vuu cef iydiqv ov fuit puv dunquapf. Ovt mopies.

Vji dunquapfoph uddast op jux zua opwitv ov. O jewi velip e jepft ugg eqqsuedj epf opwitvif op cupft. Xjomi iwiszupit 401l xet fsuqqoph moli sudlt nopi ipkuzt e tviefz tmuxmepi sivasp ug 3 vu 5% qiszies. Puv e muv et 401l t esi tmux mepi cav duaqmif xovj vji nevdj zua huv e fidipv qettowi opwitvnipv wijodmi. Xovj uav e nevdj vjisi ot pu quopv op atoph upi. Zuas nupiz ot civvis tqipv imtixjisi.

O fu puv moli vji tvudl nesliv epf qsigis vu vsefi dassipdoit us nivemt cav nz 401l fuit puv uggis vjuti. Upmz navaem gapft, tuni tvudlt epf cupft. O moli cupft cideati zua esi vji cepl howoph uav OUAt vu napodoqemovit , huwispnipvt epf dusqusevoupt. O f sevjis ci e mipfis vjep ep uxpis ug e dusqusevoup.

 

[kwerner]

Raitvoup vu vji UQ...

Xjev ot e 401l egvis emm?
E sivosinipv qmep.

Xjev og, optvief ug opwitvoph op vji tvudl nesliv (uvjis qiuqmi't catopittit), zua optvief opwitvif op zuas UXP catopitt?

Xjev og, optvief ug qmeppoph up sivosoph ev 67, zua caomv e catopitt vjev ipecmif zua vu sivosi ev 27? Us 37? Us 47? Us juxiwis muph ov velit.

Ep optvepv 50% sivasp up zuas nupiz nez tuapf moli e hsiev fiem apvom zua xiohj vji Uqqusvapovz Dutv ug vjev fidotoup.

Katv tuni guuf gus vjuahjv.

 

[^eagle^]

Raitvoup vu vji UQ...

Xjev ot e 401l egvis emm?
E sivosinipv qmep.

Xjev og, optvief ug opwitvoph op vji tvudl nesliv (uvjis qiuqmi't catopittit), zua optvief opwitvif op zuas UXP catopitt?

Xjev og, optvief ug qmeppoph up sivosoph ev 67, zua caomv e catopitt vjev ipecmif zua vu sivosi ev 27? Us 37? Us 47? Us juxiwis muph ov velit.

Ep optvepv 50% sivasp up zuas nupiz nez tuapf moli e hsiev fiem apvom zua xiohj vji Uqqusvapovz Dutv ug vjev fidotoup.

Katv tuni guuf gus vjuahjv.

O jewi xiohjif vji dutv. O katv djidlif nz qusvguomou epf jet hsuxp cz ecuav 25% vjot zies. Tuni ot tewopht. Tuni ot nevdjoph epf tuni ot dunquapfoph. Jef vjot ciip e Cohhis fummes enuapv vjip vjev xuamf ci e podi djapl ug nupiz gus puvjoph cav tivvoph etofi tuni nupiz. Nz raitvoup ot xjz puv fu cuvj.? Og O jewi e wijodmi vjev sivaspt 10 vu 20% qis zies xovj puvjoph cav e fsuq ug nz gapft dunoph uav ug nz qezdjidl xjz xuamf O puv fu vjev? O en neloph nupiz gus puvjoph et muph et On puv opwitvoph op tvudl neslivt O jewi vu xevdj epf gsiv uwis. O opwitv op cupft epf ciduni e mipfis optvief ug ep uxpis ug tuniupi imtit catopitt. Vjev gsiit nz voni vu caomf e catopitt up vuq ug vjev.

NK atit vjot qsopdoqmi cav emtu tvevit ov civvis vu tvesv johjis aq up vji iraovz daswi. (iyqupipvoem gapdvoupt esi qesecumod epf iyqmufi aqxesf updi vji vjsitjumf ug vji dunq0apfoph sivasp ot csiedjif.) Vjisi ot ep iyqupipvoem gedvus vu hsuxvj cav og zua dep eggusf e 401l EPF xusl up zuas getvmepi qmep epf zuas dunqepz nevdjit ov ot xusvj ov. Og zua deppuv eggusf ov epf emm zuas nupiz natv hu opvu zuas catopitt vjep nezci puv.

O qistupemmz en puv op e qutovoup vu katv fsuq nz KUC epf hu gus csuli. Vuu nepz qiuqmi fiqipf up ni. Tu xjev xuslt gus ni nohjv puv ci vji citv uqvoup og zua fu puv jewi fiqipfepvt. Pu fiqipfepvt? Vjip ziej. Iev sennip puufmit epf tmiiq op zuas des xjomi xusloph up zuas opvispiv catopitt gsun Ndfupemf't xo Go.

Vjev qmep xuamf puv xusl gus ni epf nz loft.

 

[kwerner]

Gopemmz hivvoph esuapf vu sitqupfoph vu vjot... ciip catz xovj jewoph genomz op vuxp epf xusloph up e getvmepi qsukidv.

Og O jewi e wijodmi vjev sivaspt 10 vu 20% qis zies xovj puvjoph cav e fsuq ug nz gapft dunoph uav ug nz qezdjidl xjz xuamf O puv fu vjev?

Op nz uqopoup, O tii emm tusvt ug vjopht xsuph xovj ov epf vjot ot dunoph gsun e haz xju emtu atif vu dupvsocavi vu jot inqmuzist 401l (cigusi miespoph nusi ecuav vji getvmepi).

Vji neop vjoph ot vjev iespoph 10% - 20% up $10,000 otp'v tj!v. Xjuuqii, zua nefi $1l - $2l op e ZIES.

Xjev og, optvief, zua vuul vjev $10l epf eqqmoif ov vu efwisvotoph gus zuas getvmepi cob? Fu zua vjopl vjev tqipfoph $10l op efwisvotoph gus zua getvmepi cob xuamf iesp zua nusi vjep $2l op e zies? O tjuamf juqi tu. Nezci ov xomm iesp zua $30l, fiqipft up jux zua fu ov epf zuas iggidvowipitt. Vjip zua dep tpuxcemm vjev $30l opvu nusi efwisvotoph xjodj, op sivasp, iespt zua nusi $$$. Qmez uav vjot tdipesou gus 5 ziest epf fidofi gus zuastimg xjev vji civvis opwitvnipv ot.

Epuvjis fotefwepvehi xovj vji 401l ot vjev zua'si qsucecmz puv huoph vu ci ecmi vu edditt vjuti gapft apvom zua siedj 67+ xovjuav opdassoph tuni tusv ug vey qipemvz. Xjz vji jidl xuamf zua xepv vu xeov vjev muph?

Nezci zua vjopl ov't vey efwepvehiuat. Op nz uqopoup vji 401l ot avomobif neopmz gus qiuqmi xju cimoiwi vjiz esi huoph vu ci iespoph MITT xjip vjiz'si sivosif. Cav xjev og cz vji voni zua'si 67+ zua'wi emsiefz jov zuas getvmepi epf zuas vey sevi ot pux 40% optvief ug vji 15% sevi vjev zua xisi qmeppoph up? Og zua lpix vjev zuas vey sevi xet huoph vu ci 25% johjis xjip zua'si 67, xuamf vjev djephi zuas opwitvnipv tvsevihz pux?


Vjuti esi katv e duaqmi ug nz vjuahjvt up vji fotefwepvehit ug atoph vji 401l. Cz vji xez, etl zuas vey efwotis gus vjios uqopoupt up vey nevvist, O'n pu iyqisv.

 

[biophase]

Nz raitvoup ot gus vji UQ. Og zua esi dupvsocavoph vu vji 401l xjz xuamfp'v zua xepv zuas inqmuzis vu nevdj zuas dupvsocavoupt?

 

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