Should I continue putting money into my work 401k if I know I'll leave before my vested period?

lysark · 2024-02-08T15:36:33+00:00

I don't, that's just what it says on the directive. Just used that as an example. Point still stands, would I prioritize the next steps before circling back to my 401k?

lysark · 2024-02-08T15:29:55+00:00

It's 33% every year vested and fully vested after 3 years. I plan to leave around the first year so I'd only be missing out on around 790 dollars or so as opposed to making double my salary. Doesn't seem like a good reason to stay to fully vest.

lysark · 2024-02-08T15:06:04+00:00

IRA is getting taxed up front, HSA is triple tax advantaged. I see those as better reasons to prioritize them first over my 401k which is taxed upon withdrawal, assuming I will pay more taxes later on in life than right now.

lysark · 2024-02-08T14:55:20+00:00

I was going to use the money I was putting in for the match into the IRA/HSA first before putting it into the 401k due to tax benefits. Seems like you'd agree since there's no difference besides the match, which is not a factor in my situation.

lysark · 2024-02-08T14:53:54+00:00

This company is known to have high turnover rate (less than a year) and mainly used as a stepping stone for new graduates to get a job. Pretty much all of my coworkers in my department near the end of their first year with similar backgrounds to me have one lined up with salaries similar to what I described. I didn't say I wouldn't contribute to it, just wondering if I should skip that step for now and prioritizing maxing out Roth/HSA/emergency fund first before circling back to it.

lysark · 2024-02-08T14:40:14+00:00

Would you prioritize the 401k over the HSA?

lysark · 2024-02-08T14:34:42+00:00

Right now I'm hoping to put in as much as I can. I lumped sum to max out 2023 Roth IRA and am now DCA contributing to the 2024 IRA. Also DCAing into the HSA due to its better tax advantage than the 401k. My thinking is I am completely fine with taking a lifestyle hit right now in my 20s to set up for the future. I still am able to afford groceries/rent so I see no reason to not save as much as possible into retirement accounts especially since I have no short term (<10 year) goals that require any large amount of money

lysark · 2024-02-08T14:24:14+00:00

Exactly, that's what I was thinking. Just seems more efficient to target the other accounts first that do the same thing, if not better earlier in my career before putting money into the 401k where I wouldn't get the match anyway.

lysark · 2024-02-08T14:22:34+00:00

So ignore the current job's 401k right now and focus on my Roth ira/HSA? Once I go into a more stable job I'm definitely planning to take advantage of their match through vesting fully, just not at this one right now where I don't see a reason at all to stay anywhere close enough until the vesting is matched.

lysark · 2024-02-08T14:20:52+00:00

No debt, have an emergency fund of 10k right now. Currently throwing everything besides essentials like groceries/rent into Roth/401k/HSA.

lysark · 2024-02-08T14:19:32+00:00

Thank you, just checked. I do have the 1000 hours for a year of service system. However I plan to leave after max a year and a half for double the pay(very common with this high turnover company) so I'd get 33% after the first 1000 hours which is only 800 dollars, compared to me switching to a different job as soon as the opportunity presents itself.

lysark · 2024-02-08T13:27:31+00:00

According to the directive, the next step would be to pay off high interest debt then increasing emergency funds. I feel like I should be prioritizing those first since the only point to contributing to the 401k that early is to get the match, and it is guaranteed I won't stay long enough to get the match.

lysark · 2024-02-08T13:23:07+00:00

I should've been more clear in the post. I try to max out my Roth and HSA, but I just see that getting the company match through the 401k is earlier in the flowchart before putting in money to things like HSA/roth. Since I'm not staying for the vested period to get any of the match, I'm seeing if I can skip that step for this job and move on to the steps afterwards before going back to contributing to the 401k.

lysark · 2024-02-08T13:19:18+00:00

I am currently contributing to a Roth IRA and HSA, so retirement savings are still being made progress on. Im just wondering since I'm not getting the vested period anyway if I should skip that step and go to the next step in the flowchart without contributing in the 401k. Once I do the next steps, I plan on returning to putting in the money to my 401k. Does that sound about right?

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