Discussion in 'UPS Discussions' started by Indecisi0n, Aug 3, 2012.

  1. Indecisi0n

    Indecisi0n Well-Known Member

    I noticed that UPS started a 401K on me when I was a casual which I thought was weird. When I went perm I noticed that the 401K stopped and it showed I have a few bucks in there. Months go by and then suddenly the 401K starts again. How can they just start and stop MY 401K ?
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    They can't---the employee decides whether they want to start their 401K, whether or not to contribute to it and whether they want to stop it. Are you sure you didn't have money going to it at some point and perhaps forgot about it?
  3. Indecisi0n

    Indecisi0n Well-Known Member

    Nope, I remembering seeing it on my check when I started. Then it stopped and was gone from my check until last week. It just started up again!
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

  5. Indecisi0n

    Indecisi0n Well-Known Member

    I am registered there. I registered when I first noticed they were taking it out. I can just understand how its starting and stopping without me doing anything.
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    It can't which is why you need to go there and figure out what is going on.
  7. Indecisi0n

    Indecisi0n Well-Known Member

    I'll do some more digging. Thanks.
  8. JonFrum

    JonFrum Member

    Congress passed a law a few years ago requiring companies to automatically enroll New Hires in their 401(k), at a low contribution rate. This is to encourage saving for retirement. To prevent this well-intentioned law from being too heavy-handed, they allow you to cancel the deductions any time you want.

    From the 401(k) Plan's Summary Plan Description (SPD):
    The following changes are effective on April 1, 2009:Full-time employees hired, rehired or transferred to an eligible job position on or after April 1, 2009 will be automatically enrolled 90 days after their employment/transfer date at a two percent pre-tax deferral rate. The pre-tax deferral rate will be increased by one percent each year until it reaches 6 percent. The contributions will be invested in the age appropriate Bright Horizon Fund. Eligible employees may actively enroll in the Plan at any time prior to being automatically enrolled. They may also decline enrollment at any time by calling 1-800-537-0189.​
  9. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    2 percent is what you would likely lose to taxes anyway so yes everyone should be automatically enrolled at 2%
  10. Indecisi0n

    Indecisi0n Well-Known Member

    Thank you. It is at a very low rate.
  11. Jackburton

    Jackburton Gone Fish'n

    Push it till it hurts and necropost this thread in 20 years with a reply to me,"Thanks".
  12. kingOFchester

    kingOFchester Well-Known Member

    YES, contribute until it hurts.

    It amazes me to see all the new cars on the road. I have seen many people in foreclosure, but yet they have several $30,000 cars sitting in the driveway. Even if you don't go in foreclosure, does having 60k in cash tied up in vehicles make any kind of sense?

    Lets say you have 2 cars on payment that cost 60k total. At 5% that would come to about 68k in 5 years.

    Lets say you didn't buy the car pits, and invested the money in a fund that gives you a 4% return. In 20 years that 68k would turn into 150k.

    So the choice is in 20 years have 2 cars worth close to nothing, or 150k?????
  13. Necropostophiliac

    Necropostophiliac Well-Known Member

    Sounds great to me to pull it up 20 years from now.
  14. Indecisi0n

    Indecisi0n Well-Known Member

    I know i need to talk to my tax guy but since UPS doesn't contribute would it make more sense to put money into my IRA instead of 401K?
  15. kingOFchester

    kingOFchester Well-Known Member

    Higher contribution allowances.
    You can borrow money from a 401k
    Limited investment choices.

    Just keep in mind that if you open a traditional IRA you will need to claim this on your taxes in order to get the deduction. Also, far easier to put off contribution with an IRA vs 401k as the 401k is taken out before you ever see it. Also, with an IRA it is easy to get sucked into the trading game which makes you more prone to making poor investment choices. The worst thing that can happen is for a novice to make a great return on a stock when they first start out. The investor is now under the illusion that they can make all kinds of trades and beat the market.

    For me, I put away enough into the 401k to meet my retirement goal. The "fun" money goes into my IRA and other accounts to "roll the dice".
  16. Jones

    Jones fILE A GRIEVE! Staff Member

    Also keep in mind that the fees we pay on the funds contained within the 401K are very low by industry standards. Just as an example, the fees on Vanguard's S&P500 index are 5 times what we pay on the same index in our 401K.
  17. Jackburton

    Jackburton Gone Fish'n

    Also as a reminder if you're doing a Roth IRA, the limit is 5k a year max I believe, Roth 401k is 17k.


    So do you sign into that account to up the percentage paid in? Sorry newbie here as well.
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Yes---after you log in click on the Teamster 401K heading. Scroll down on the left hand side of the page to Contribution Rate. Change the rate as needed and then hit apply changes. If you do it today it may or may not start this week---it will more than likely start next week. It will also ask you if you want to change the way your contribution is distributed to your investments.
  20. JDoe123

    JDoe123 ad astra per aspera

    No, don't!  Cementups will get really mad!