Is it better to live on ramen at age 26 or 66?
May 27, 2014 11:55 AM Subscribe
Is there any point in letting my employer open up a 401k even if I have no money to put into it?
posted by geegollygosh to Work & Money (14 answers total) 3 users marked this as a favorite
I recently started a new-but-temporary job, which I'll be at until the beginning of September. After that I don't know what my employment situation will be.
I am going to be automatically enrolled in their 401k unless I opt out (at 4% of my pay I believe.) There is no matching.
I am in my mid 20s and I have no savings and no debt. I have been living paycheck to paycheck recently because of a series of events that wiped out my cushion. I'll be able to save around $500 a month at this job, but I'd like that primarily to be going towad rebuilding my emergency fund. So, I could afford to stick the money in a 401k technically.
In September, I have no idea where I'll be working or if they'll offer a 401k (likely not.) If I were to open one now, could I keep contributing to it even if I'd moved on to another employer that didn't offer it?
Would it make sense to put that money somewhere else? I'd like to start thinking about long term saving, I just make so little (around 20k a year) that it seems silly to start socking anything away.