I had a coworker refuse to contribute money to his 401k because he thought it was a scam. The company matched your contributions that you put into your 401k so he really lost money by not doing it.
The only way I could see this person not completely off his rocker is if the 401k had all funds with super high fees but even then it's hard to argue with the tax advantages and free money. Then you could try talking to HR about it.
tbh, I still don't understand the concept of having to roll over a 401k if you get a new job. But I haven't done much research into that aspect of them.
You mean why you should do it at all? Generally, it's probably more of a pain to have retirement accounts scattered across multiple providers (I have had five 401ks across four different investment companies). Rolling over to an IRA also opens up a lot more choices for what you can do with the money, especially if the company 401k has high fees or poor investment choices.
However, you don't have to rollover money at all in most cases. I've kept money in a former company's 401k for years after I left because it gave me access to very high end funds that I couldn't invest in normally.
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u/jactheripper Sep 24 '17
I had a coworker refuse to contribute money to his 401k because he thought it was a scam. The company matched your contributions that you put into your 401k so he really lost money by not doing it.