104Feeder
Phoenix Feeder
Pretty convenient this thread got bumped, because I've been looking into 401k contribution and need some advice..
Quite frankly, I can't afford to contribute much. I'm part time and I gross about $400/week, which results in a net of ~$300-315 after taxes, union dues, and DRIVE. After rent, gas, food, etc, there's not a whole lot left over and I've only recently started putting a little to the side in savings. I'd like to start now so I'm at least ahead of the game when and if I go full time. I can really only afford to contribute maybe ~2-3%/week, which is on the pitiful side. But it's never too early to start; I've got a few years before I even hit 30.
However, I have some questions:
If I contribute to the Teamsters/UPS 401k plan, I'm assuming that money is not portable/cannot be contributed to if I break employment from UPS in the next 5-10 years? I don't want to contribute to a fund before I go FT in case a "dream job" comes on my radar (very unlikely, but expect the unexpected..)
If I contribute to a Roth 401k, that money is pre-taxed and portable, correct?
If you left UPS you could leave the money in your 401k or have it transferred to an IRA (not a Roth IRA unless it was in a Roth 401k). You would want to do a fund-to-fund transfer and not have them mail you a check or you incur tax liability. Vanguard would be a great choice for an IRA. Clarkhoward.com has great investment guides and tips.