My boss enrolled me in a 401k plan at work without my consent and deducted money from my pay. Is this legal?

lightningnstars

No. not to my knowledge. make sure you didn't sign smething when you started working there first. as long as you didn't you should be throwing a little fit.
These plans require that you complete paperwork, someimes alot actually or you need to opt out, so at the very least you should have been presented the oppertunity to decide, and if your enrolled in a 401k you need to identify a beneficiary too. sounds fishy !
Check employee handbook, go to human resources and find out more information, and talk to other employees.

redvelvetflames4ever

There are companies who automatically put there employees into there 401K plan, but you would need to sign a document stating it is okay for them to do this as the investment company needs your signature. Go to your boss or Human Resources department or accounting (not sure who in your company is in charge of 401K. Normally it is HR, but some companies it may be accounting as they do the deductions.) Advise HR you are not interested in being in the 401K plan and did not sign anything to the effect stating you would join. You should be given an opt-out form that needs to be signed. Make sure it is given to you immediately.

GUS

Apparently it is legal. I work for a company that did this exact same thing. Everyone who was eligible on Jan 1 2007 was added to the plan at the minimum contribution rate of 3% and the company matched it for a total contribution of 6%. Then, they told the employees that their rate of contribution would be increased each year unless the employee notified them in writing not to.

This is a big company with 12000 employees. I doubt they would do this if it were illegal.

Murphy

I would check your hand book/benefits paperwork and see if you might have signed something allowing this or if it's stated that it is mandatory that you participate. This may be their form of retirement plan. If there's nothing disclosed about it being mandatory, then it's probably not legal. Contact your local labor board.

Mom of 2

This is totally legal and stated in the regulations. In order to NOT be enrolled, you need to sign an OPT-OUT form. Here is the wording from the IRS: Automatic enrollment in a 401(k) plan. A 401(k) plan can have an automatic enrollment feature. This feature permits the employer to automatically reduce your wages by a fixed percentage or amount and contribute that amount to the 401(k) plan unless you have affirmatively chosen not to have your wages reduced or have chosen to have your wages reduced by a different percentage. These contributions qualify as elective deferrals. This has been an effective way for many employers to increase participation in their 401(k) plans.

http://www.irs.gov/retirement/participant/article/0,,id=151753,00.html

mamaac43

its not illegal but it isnt ethical. you should in writting request that he stop extracting monies from your check.

Nurse Lola

No this is totally illegal without your signature on the paperwork. No one can authorize deductions from your paycheck but you and your signature. you also have to authorize how much you want to deduct from each paycheck and you have to be a willing participant in the 401k. You better get the phone number of the company who the 401k is with and ask them who authorized this change and you want verification of your signature. You have a lawsuit. Contact a lawyer for a free consultation.

snicklefritz

no its not hes an A $$ hole

connemara

Jack

It is not illegal, I ran into this recently myself

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