I’m not thrilled by the almost 1.5 year wait, obviously, but the benefits of joining the firm way outweighed the 401K issue so I jumped. Still glad I did, just trying to offset the one negative of jumping – the 401K start period.
Their policy is that a new employee is not eligible to join until their 1 year anniv, then they have to wait until the next enrollment period which is every 6 month. Since I started in Aug, I’m not at one year until Aug 2017 and next open enrollment is Jan 2018. Ouch. One good part is that I cashed out a good chunk o change at the old place and they took a boatload out for 401K, so it really feels more like a year of donations missed, not a year and a half.
Can’t for the life of me understand what good that wait does the new company, as I’d be putting in MY money not theirs. Waiting a year to start their match I can see, but waiting on my part? Makes no sense.
My wife is an accountant and says she sees a lot of companies with that rule, though many are shortening it now.
Flu, thanks for the back door explanation. Probably way more work and risk than I want to put in – after all, the max I could put into an IRA is just a fraction of what I’d put into a 401K in 2017…think I’ll consider your other suggestion of putting part towards mortgage and a part under the mattress. I’ll run the numbers of how much I’d have to throw at the mortgage to have it paid off when I’m 67, that might steer me towards the right split.
I also should check to see what fund choices they offer – hopefully it isn’t crappy! That might influence my decision on how long I stay.
Again, thanks all. It never ceases to amaze me the weird positions I find myself in.
