Employer depositing bonus into 401k instead of bank account

[Gunslinger08]

So, I've heard that my employer will begin doing this - not optionally. Is this a standard practice?

 

[Electric Amish]

Hrmmmm... Doesn't sound kosher to me...

Even if it's legal, it would piss me off.

 

[JS80]

lol that sux...

any vesting requirements?

I have definitely heard of profit sharing going into 401k. It is not "not normal."

 

[mchammer187]

defnitely not normal

 

[chairbornrangerx]

doesn't sound normal, but your in control of your 401k, you should be able to pull something out of it, depending on how its set up.

 

[GuitarDaddy]

No not normal at all, and it's not a bonus if they put it in your 401k it's an employer match and should be tax deffered.

 

[DaveSimmons]

We get profit sharing added to our 401k (sweet, tax free!) but our bonus gets the giant tax bite from being treated as extra wages.

 

[djheater]

Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

 

[lokiju]

Transfer 401k funds into a Roth IRA.

 

[Thorny]

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

 

[KaChow]

The last company I worked for did that. It was about $6k in bonuses over a two year period ('03 and '04) while the market was still trying to pick itself back up. For the last few years I've been quite happy with my bonus being invested.

 

[Gunslinger08]

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

 

[GuitarDaddy]

[Clark Griswald] At least it's not the Jelly of the month club [Clark Griswald]

 

[Thorny]

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

 

[Gunslinger08]

Originally posted by: Thorny
Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

Wondered how long it would be until this retarded argument showed up.

 

[djheater]

Originally posted by: Thorny

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

In many careers a bonus is effectively part of the salary and a reason that people choose the job or company. A bonus is generally given because of merit, and not just as a surprise gift.

 

[JasonCoder]

Originally posted by: Thorny

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

What's with the hostility?

To the OP: IMO a bonus is part of your compensation package whereas a retirement plan is usually an opt-in thing. They are probably doing this to look better on some part of their balance sheet. I'd be ticked.

 

[SampSon]

Originally posted by: joshsquall

Originally posted by: Thorny
Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

Wondered how long it would be until this retarded argument showed up.

Totally. Simplistic black and white thinking is a trademark of forum members here.

If my company took my bonus and put it into my 401K without asking me, I would be pissed.

 

[Thorny]

Originally posted by: JasonCoder

Originally posted by: Thorny

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

What's with the hostility?

To the OP: IMO a bonus is part of your compensation package whereas a retirement plan is usually an opt-in thing. They are probably doing this to look better on some part of their balance sheet. I'd be ticked.

I'm not being hostile, but if this was part of his compensation package I'm sure he would've been previously aware of it. Getting pissed about someone giving you money is silly. Perhaps the merit was not there for a cash gift, so they saved expense by an IRA contribution.

Edit: This is assuming that this bonus is not in lieu of a cash bonus the OP has gotten in previous years. But if you weren't expecting a bonus, or had never recieved a cash bonus for the holidays before, what's the big deal?

 

[RichUK]

What's this 401k you guys speak of?

 

[Gunslinger08]

Originally posted by: Thorny

Originally posted by: JasonCoder

Originally posted by: Thorny

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

What's with the hostility?

To the OP: IMO a bonus is part of your compensation package whereas a retirement plan is usually an opt-in thing. They are probably doing this to look better on some part of their balance sheet. I'd be ticked.

I'm not being hostile, but if this was part of his compensation package I'm sure he would've been previously aware of it. Getting pissed about someone giving you money is silly. Perhaps the merit was not there for a cash gift, so they saved expense by an IRA contribution.

Edit: This is assuming that this bonus is not in lieu of a cash bonus the OP has gotten in previous years. But if you weren't expecting a bonus, or had never recieved a cash bonus for the holidays before, what's the big deal?

This is an quarterly bonus, which has previously been paid via direct deposit to my bank account.

 

[Thorny]

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: JasonCoder

Originally posted by: Thorny

Originally posted by: joshsquall

Originally posted by: Thorny

Originally posted by: djheater
Sounds like an agenda driven decision made by management to help their employees save retirement money.

Depending on your wage and the size of the bonus, I'd be pretty pissed.

Why would you be pissed about getting a bonus?

Some people like to actually use the money to pay bills, pay down debt, or splurge on a nice item or vacation. I'm 22 years old. I won't see this money for 40 or so years.

Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

What's with the hostility?

To the OP: IMO a bonus is part of your compensation package whereas a retirement plan is usually an opt-in thing. They are probably doing this to look better on some part of their balance sheet. I'd be ticked.

I'm not being hostile, but if this was part of his compensation package I'm sure he would've been previously aware of it. Getting pissed about someone giving you money is silly. Perhaps the merit was not there for a cash gift, so they saved expense by an IRA contribution.

Edit: This is assuming that this bonus is not in lieu of a cash bonus the OP has gotten in previous years. But if you weren't expecting a bonus, or had never recieved a cash bonus for the holidays before, what's the big deal?

This is an quarterly bonus, which has previously been paid via direct deposit to my bank account.

In that case I'd prolly be pissed too.

 

[waggy]

Originally posted by: SampSon

Originally posted by: joshsquall

Originally posted by: Thorny
Since its a bonus they don't really have to give it to you anyway. Why don't you just tell them you're too ungrateful to take the money, since you can't comprehend that it's not you money to begin with.

Wondered how long it would be until this retarded argument showed up.

Totally. Simplistic black and white thinking is a trademark of forum members here.

If my company took my bonus and put it into my 401K without asking me, I would be pissed.

and what could you do about it? well besides finding a diffrent job.

My wife's place does this. they put it into a 401k. she has no choice. wich blows. though we did get a $1200 bonus outside of her normal year end bonus.

 

[her209]

What happens if you go over the allowable limit?

 

[FoBoT]

at least you are getting something besides a kick to the curb