California robbery [I Was Robbed]
California law forces certain part time employees to put 7.5% of their paycheck into specifically a Fidelity 401k account and the only options are a handful of stock or bond funds.
Then, they charge you a $8.75 quarterly fee.
Then, when you are no longer working for them, If you have under 2000$ in your account (which is very likely because you only worked part time), you have to either move that money to another 401k elsewhere or take it out.
Taking it out means you pay 10% early withdrawal penalty for closing a 401k PLUS income tax.
If you were lucky enough to end up with over 2,000$ in your account, you can leave it in there to continue being assessed quarerly fees until you have nothing left in there, unless of course you get lucky in your stock fund which makes more than the quarterly fees.
This is highway robbery for poor people who already don't make that much money.
Then, they charge you a $8.75 quarterly fee.
Then, when you are no longer working for them, If you have under 2000$ in your account (which is very likely because you only worked part time), you have to either move that money to another 401k elsewhere or take it out.
Taking it out means you pay 10% early withdrawal penalty for closing a 401k PLUS income tax.
If you were lucky enough to end up with over 2,000$ in your account, you can leave it in there to continue being assessed quarerly fees until you have nothing left in there, unless of course you get lucky in your stock fund which makes more than the quarterly fees.
This is highway robbery for poor people who already don't make that much money.
