No. of Recommendations: 6
Sounds like justifiably, her company isn't real proud of their investment options.
I'd suggest talking to Human Resources, and getting co-workers to do it also. Tell them that retirement plans are an important (to you) part of what makes a company attractive, and that the 401k really offers pretty lousy choices. Couldn't they offer some more attractive choices? Have they considered getting a different trustee, that wouldn't gouge the employees?
At this point, yes, contribute up to the match.
Yes, she could get her hands on her funds by quitting, roll the 401k into an IRA and then rejoin, but usually for matching funds there is a period, commonly five years, required for vesting. If she's been with the company long enough for full vesting she would be entitled to the matching funds, but in many plans if you quit before the five years you forfeit those contributions. Then if she quit and rejoined, the five year clock would probably restart.
I'd work on the human resources folks to try to get employees some better choices.
Best wishes, Chris
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