My company doesn’t contribute to our 401ks but forces us to have one. I’ve been arguing with payroll saying I don’t want anything taken from my paycheck. But they tell me it’s company policy. Is this even legal?

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You might be forced to create an account, but once you log in, you should be able to select 0%. The plan can be designed such that without an election, a default withholding and investment option is used, so you need to override the default to 0% by creating an account and specifically changing it to 0%.

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Force is a strong word. They are likely auto-matically enrolling you to be compliant with Secure Act 2.0, but you have the right to set the deferral rate to 0%.

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Not sure if its legality but it sure doesn’t make sense to me. Do they at least offer a Roth 401k option? If they do and continue to force you to contribute, I would choose the Roth 401k option.

I'm guessing they can auto-enroll you legally, but I doubt they can compel you to contribute against your will. There has to be a way for you to set your contributions per paycheck to 0.

I would look into setting it to 0% and also a Roth option. Congrats to you for not needing I a retirement plan through your company. How are you planning for retirement? Got any tips you want to share?

I don’t know that I can speak to the legality either, but it sounds ridiculous. I don’t know how they can force you to have a retirement account or maybe they can force you to have a retirement account but they can’t force you contribute to it. I wouldn’t think.

I would think it's part of onboarding an employee. I have one for a temp position that I held for 2 months. I never contributed to it however it is managed by a firm that manages a 401k that I did participate in. To this day, if I click the correct set of tabs, I can see that I have $0 in the temp job 401k. It cracks me up, but it likely simplifies an onboarding procedure.

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