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Employer ignoring my requests to start a 401(k)

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MeatSafeMurdrer

Junior Member
What is the name of your state (only U.S. law)? California

Hi, I am a caregiver in the bay area of CA. My main employer offers a 401(k) plan, and matches up to 4%, the only requirement for starting this plan is you must have worked 1,000 hours for them to become eligible. I have worked for this employer for close to 3.5 years now, and I just checked, I worked a thousand hours in just the last year or so, so there is absolutely no question about whether or not I qualify for the 401(k). They say there are only two times a year one can enroll in the program, one was supposed to be in July, and the next is in January I believe. I contacted my employer about 6 weeks before the enrollment period, and expressed my interest in starting my 401(k). They were somewhat defensive, and annoyed (they always behave this way) and insisted that they would inform me IF I was eligible... when the time comes. My understanding is that it is the law that they must not only inform me, but help me enroll (if I choose to) just as soon as I qualify. Obviously I qualified years ago and they aren't doing their jobs. I want to know what kind of action I should take, keeping in mind that they once threatened to fire a coworker for simply asking where his 401(k) was (they had switched companies and his life savings had been missing for something like 6 months, they refused to tell him who was handling it, or give him any other info. Every time he asked about his money, they just responded by saying that it would show up any day and then they would have his info, until eventually the got sick of hearing from him about it and told him they would fire him if they emailed them about it again, he responded by reporting them to some agency and then just a day or so leter they gave him his info. )

So, basically I just want to know what I should do to get my 401(k) started when my employer is completely unwilling to do it for me?

Thanks
 


cbg

I'm a Northern Girl
While it is unusual, it is not illegal to have only two enrollment periods a year. While it would be nice of your employer to send out reminder notices as they approach, I am not aware of any regulation requiring that they do so each time. It sounds to me as if they do not believe you are eligible. It's not 1,000 hours over all; it's 1,000 hours during the plan year (which may or may not correspond with the calendar year). What I would suggest is that you remember an old saying about flies, honey, and vinegar, and with that in mind ask them, politely, why it is that you are not eligible.

Then come back here with their response and I'll take you to the next step.
 
You could start your own IRA account, and take contributions off your taxes.

Some returns on them can be higher than the return on 401ks depending upon what you invest in.
 
Not necessarily, and certainly couldn't contribute MORE than in the 401(k). Fare LESS in fact.
So, it is capped at 5 grand as far as tax deductions. It was just an alternative and if your company does not have or offer a 401k then you should have an IRA. Hence why they were created, and my rate of return for my IRA is higher than for my 401k plan even though the money is less in the IRA.
 

davew128

Senior Member
So, it is capped at 5 grand as far as tax deductions. It was just an alternative and if your company does not have or offer a 401k then you should have an IRA. Hence why they were created, and my rate of return for my IRA is higher than for my 401k plan even though the money is less in the IRA.
It is capped at $5k as far as CONTRIBUTIONS. The tax deduction depending on other facts not listed might be $0.
 

MeatSafeMurdrer

Junior Member
While it is unusual, it is not illegal to have only two enrollment periods a year. While it would be nice of your employer to send out reminder notices as they approach, I am not aware of any regulation requiring that they do so each time. It sounds to me as if they do not believe you are eligible. It's not 1,000 hours over all; it's 1,000 hours during the plan year (which may or may not correspond with the calendar year). What I would suggest is that you remember an old saying about flies, honey, and vinegar, and with that in mind ask them, politely, why it is that you are not eligible.

Then come back here with their response and I'll take you to the next step.
Okay, now I'm confused. Are you saying that I may need to work a thousand hours in one year, or I just won't ever be able to start my 401(k)? Cause that sounds like a crummy deal for me. I've worked for this company for years, thousands of hours, definitely a thousand in the last 12 months... I guess it wouldn't surprise me if their 401(k) plan is a joke. I work 60 hours, but they divide the hours between two agencies that pay me so neither has to offer me insurance, and it's not like I can get more hours just to qualify, more hours don't exist. Pretty ironic that I'll never get to see a doctor or a dentist, and have to work right up until I die or become disabled from some illness, and they can bring in more people with the job I have now to take care of me...

But I digress, one of my main points is that they have ignored all of my attempts to obtain any info or guidance on how to or when I can start saving, it's not like I can do it behind my bosses back, nobody works above the people who are completely incompetent and unwilling to do their jobs. Also, like I said, a coworker was nearly fired just for asking where his life savings was after months of then refusing to tell him, I don't want to get in some trouble over this, but I feel like I'm really being screwed out of that 4%...

thanks for all your quick responses guys...
 

TheGeekess

Keeper of the Kraken
Okay, now I'm confused. Are you saying that I may need to work a thousand hours in one year, or I just won't ever be able to start my 401(k)? Cause that sounds like a crummy deal for me. I've worked for this company for years, thousands of hours, definitely a thousand in the last 12 months... I guess it wouldn't surprise me if their 401(k) plan is a joke. I work 60 hours, but they divide the hours between two agencies that pay me so neither has to offer me insurance, and it's not like I can get more hours just to qualify, more hours don't exist. Pretty ironic that I'll never get to see a doctor or a dentist, and have to work right up until I die or become disabled from some illness, and they can bring in more people with the job I have now to take care of me...

But I digress, one of my main points is that they have ignored all of my attempts to obtain any info or guidance on how to or when I can start saving, it's not like I can do it behind my bosses back, nobody works above the people who are completely incompetent and unwilling to do their jobs. Also, like I said, a coworker was nearly fired just for asking where his life savings was after months of then refusing to tell him, I don't want to get in some trouble over this, but I feel like I'm really being screwed out of that 4%...

thanks for all your quick responses guys...
It is not and nor has it ever been your employers' responsibility to provide health care coverage. :cool:
 

cbg

I'm a Northern Girl
Yes, that is what I am saying. You need to work 1000 hours (which is less than half time on a 40 hour week) per year before being eligible for a 401(k). Take it up with the IRS - it's their definition.

The rules for eligibility for health insurance and the rules for eligibility for a 401(k) are not the same.

When you asked them why you were not eligible for the 401(k), as I suggested you do in my last response, what did they say?
 

CSO286

Senior Member
While it is unusual, it is not illegal to have only two enrollment periods a year. While it would be nice of your employer to send out reminder notices as they approach, I am not aware of any regulation requiring that they do so each time. It sounds to me as if they do not believe you are eligible. It's not 1,000 hours over all; it's 1,000 hours during the plan year (which may or may not correspond with the calendar year). What I would suggest is that you remember an old saying about flies, honey, and vinegar, and with that in mind ask them, politely, why it is that you are not eligible.

Then come back here with their response and I'll take you to the next step
.
Okay, now I'm confused. Are you saying that I may need to work a thousand hours in one year, or I just won't ever be able to start my 401(k)? Cause that sounds like a crummy deal for me. I've worked for this company for years, thousands of hours, definitely a thousand in the last 12 months... I guess it wouldn't surprise me if their 401(k) plan is a joke. I work 60 hours, but they divide the hours between two agencies that pay me so neither has to offer me insurance, and it's not like I can get more hours just to qualify, more hours don't exist. Pretty ironic that I'll never get to see a doctor or a dentist, and have to work right up until I die or become disabled from some illness, and they can bring in more people with the job I have now to take care of me...

But I digress, one of my main points is that they have ignored all of my attempts to obtain any info or guidance on how to or when I can start saving, it's not like I can do it behind my bosses back, nobody works above the people who are completely incompetent and unwilling to do their jobs. Also, like I said, a coworker was nearly fired just for asking where his life savings was after months of then refusing to tell him, I don't want to get in some trouble over this, but I feel like I'm really being screwed out of that 4%...

thanks for all your quick responses guys...
What happened when you went to your benefits people and politely inquired as to the reason you remain ineligible for a 401(k)?
 

MeatSafeMurdrer

Junior Member
What happened when you went to your benefits people and politely inquired as to the reason you remain ineligible for a 401(k)?
They said they would let me know if and when I qualified and not to ask again, as of now I work 40 hours a week for just this agency, and easily worked a thousand hours for them in the past year, or any one year period within the last couple of years.

I am aware that health care coverage works completely different, I was simply commenting on the irony that someone in my line of work is never going to get any.
 

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