Greetings, Prebson, and welcome.<<I have a unique situation that I haven't noticed beingtalked about. I am a computer consultant, and beingsuch, I frequently change employers (I have so farworked through agencies that find the jobs and thenpay me on an hourly W-2 basis). I am about to start a newassignment, and the agency I will be with is offering a401K. Should I sign up for it and take out the max, eventhough there is no match?My thoughts are that I take out the max and put it intoone of the fixed income accounts. Then, when I leave thisagency in 4-6 months (or possibly longer), I do a directtransfer to my brokerage account to follow the FF strategy.I would take the max to reduce my taxable income, and Iwould go with a fixed account to ensure that I would retainall of the principal for this short-term investment. The401K sponsor does have a S&P 500 index account, but I wouldbe afraid that I may lose some of the principal before taking it out.>>The way you have described this situation, you will not be employed by the firm with the 401k, but by the temp agency who pays you and issues you your W2 at the end of the year. If that's the case, then I fail to see how you can possibly be eligible to participate in the new firm's 401k plan, which is open only to employees of that firm. As a temp, you won't be eligible.OTOH, if you're not using your agency on this job but instead will be employed directly by the firm AND assuming you are eligible to participate in the 401k immediately after hire, then your plan will work.In short, it really depends on by whom you will be employed.Regards…….Pixy
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