So I called to end my 401k contributions today and see what the process is for moving the money I have in my current 401k account out of their system completely. I cannot abide giving nearly 10% of my gross pre-tax pay to a company helping to finance a class of multinational über-corps that are acting like Lex Luthor, or any other variety of super villains, not to mention they are about to drive us further into recession.
Painful and frustrating details under Ms. Squiggly.
Here is what I was told my options are:
1. I can't take my own contributions (re my own money) out of their system unless:
A) I am fired, laid off, and/or quit, (which ends up being about 30% taxed and 20% penalties...for the record I am pretty much fine with the taxation and penalties....I understand that is what I signed up for with the whole idea of a 401k).
B) I am 59.5 years old (gotta wonder what data set that number originated from) and that also includes steep penalties.
C) I take a loan out against my own money, which they will charge me 4.56% interest on, while continuing to make profit off of my original money (which, by the way, I see less than 1/100th of 1% of the profit from their "investments").
D) I fulfill the requirements for a "hardship" clause, which seems to be technically impossible for a 33-year old with no current chronic medical issues (mental health doesn't seem to count from what I was told, though that seems to be a whole other can of worms).
It's impossible for me to get my money back from a system that is abusing laws, people, and consolidating power. I love what I do but I've never felt so inclined to find a new job or just have this one temporarily fire me.
Really makes me realize why there were market-separated pension retirement funds in the first place.
Any advice or one of those squeeze stress balls would be very appreciated.
disgusted with so many systems
#OccupyWallStreet
#OccupySantaBarbara
#OccupyEverywhere
6:05 PM PT: Quick update in response to some of the comments:
* I have closed a 401k prior to this one when I was unemployed and needed the money fully accepting the taxes and fees associated as part of the deal with paying into the 401k with pre-tax money.
* I don't blame my company for any of this.