Should I start my 401k even if I will be working for myself in 4 years?

Question

My employer will start providing 401K benefit to us in the next few weeks but he said it's still up to us whether we want to do it or not. My question is, should I do it even though I know for sure I will not be working for them in 2-4 years? I've read that the 401k account can be rolled over from company to company but the thing is, I am planning to become a published author, and this means I will be working for myself, not for any other company. I cannot do the author thing now because it will have complications with my visa. I know 401k will get me free money but what will happen to my account/money once I'm working for myself?

Answer 1

Yes the tax shelter benefits a 401k provides will help you contribute to your savings and save on what you are taxed, so do it. Even the short amount of time will add up and you'll be glad you have it in 2-4 years.

Answer 2

Yes, you can always roll it over into a convential IRA tax free and gain money on it while you work for yourself.  When you retire you'll have both the IRA from your 401K and any other monies you save up while working for self.  You can also add monies to your IRA from your own business.

Answer 3

You can roll it over into an IRA when you leave the company.

Answer 4

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Answer 5

Go for it, it a freeby,  the employer will match you something so that's free for you,

You will get tax benefits, you will make money if the market cooperates, you'll save money, and the company is giving you something as their matching contributions.

You do the math

When you leave, you can always roll the 401 into an IRA account.  The Government has been planning to let money roll to a roth Ira, but I'm not sure if this have passed.

You could always run your situation pass the Internal Revenue Service and they may be able to help - it's a free service.

Good luck