Hello blind community, I have a question regarding 401k account. I am a summer intern and just realized my employer offers 401k for interns so I got excited and enrolled in a plan without knowing that they will contribute to my account after one year but my internship is only 3 months which means they will forfeit the contribution. Do I just keep my account as it is or is it better if I just cancel my enrollment? (It is thru Fidelity Investments) What happens when my employment finishes with this company? This is my first time dealing with these kinds of stuff feeling so overwhelmed #401k #investments
Ask Hr
Keep the account. The money is any will be yours and you can take it with you to the next job
Do I have to anything from my end after I terminate my employment or is it okay to just leave there?
Leave it there. After you go to a new job you can do a rollover. If the account has no money Fidelity will automatically close it.
OP, just ask if there are any fees associated with the account post termination.
You should enroll and make Roth contributions. Allows you to start saving for retirement and see the power of compounding. You will not lose your contributions just the employer portion due to you not being vested. If you get a job there your time will most likely be counted towards the vesting period. Invest the money in stocks. Now is a great time to buy while the market is down. Once your internship ends roll the money into a Roth IRA/Fidelity or Robinhood. You will have access to your contributions tax and penalty free at anytime but any earnings are subject to taxes and penalties.
Ask HR
Thanks
😂