Is there such a number as a 403k? I am not sure exactly what the title is.
Is there such a number as a 403k? I am not sure exactly what the title is.
It might be a 403b. What's her employer's industry?
It is a YMCA.
Yes, I suppose that could be a 403b.
I know less about 403b's than I do about 401k's, but I will be talking with someone later today that knows more about them than I do. I'll get back to you.
This is what my source says but hold for cbg to come back & see what the person she talks to has to say.
At one time, the only way you could join your company's 401(k) plan, 403(b) plan, or 457(b) plan was to put pen to paper and sign yourself up by filling out the appropriate forms. Now, though, in an effort to help participants increase their retirement savings, some employers have begun enrolling their employees automatically. With automatic enrollment, you don't fill out a form to opt into your company's retirement plan; you only fill out a form to opt out of it. You need to ask your employer for an opt out form if you do not wish to participate in their retirement plan. They cannot require you to participate though very few employees will opt out.
They gave her a paper to fill out and on it the phrase "required to join"-
nothing about legally required, just required to join.
She must fill out papers and sign it. That is what makes me wonder if she
does have an option to say no.
When she began to work there, they were on her back (almost demanding)
she automatically have a deduction for the United Way be taken out of her
salary. She works all night scrubbing and cleaning for these people and makes $9.00 per hour and they insist she give part of that away. Now this.
That is pure nerve.
If she is legally not required, then she won't. She can barely make ends meet now.
According to my expert, she needs to confirm if it is a 401k or a 403b. If it is a 401k, they definitely cannot require it. They can have an auto-enroll, where she is enrolled unless she takes specific steps to prevent it, but they cannot make it mandatory.
If it is a 403b, my expert says she does not believe they can make it mandatory, but she is not positive, because while they are mostly the same regs, there are a few differences and she has never run a 403b.
The US DOL is the regulatory agency for both. That's who she should contact both to confirm whether a 403b can make participation mandatory, and to file her complaint if they say it cannot (or if it turns out to be a 401k, where mandatory is definitely not allowed).