is it ethical?

[Sunnyday]

Slightly hypothetical situation. I was planning to contribute to my company's retirement plan and get the maximum match this summer no matter what.

I'm also looking for a new job, but estimated that it would take more than 6 months to get a job. I just recently got a nibble on the job search front.

Is it ethical to contribute right now to the retirement fund if i was to get a firm job offer now to maximize my financial interests all while knowing that I will be sending in a resignation letter.

This is of course hypothetical because I have no job offer as of yet.

I think that I might do a first contribution within the next couple of weeks because I know I can do it in good conscious now but not if I had a real job offer.

Opinions on the ethics of it all.

All contributions and matches are 100% vested immediately.

[achelois]

I do not see anything unethical about it. You are currently employed there. Who knows when you will get an acceptable job offer. 

I am retiring in June. My employer knows it. I am still getting the match, accumulating PTO hours, etc. 

[lazysundays]

I see no conflict.

[Peace77]

Go ahead and contribute now.  You don't know what the future holds.

[Shooby]

What would be unethical? It's your money? You are employed there.

[Sunnyday]

I don't know. it just seem wrong to me to use up as much of the benefits as possible, knowing that I would jump ship in a heartbeat.

Doesn't sound right. But you guys are right. it's fine.

I just have to do it now, because IF I had a firm offer in hand, I wouldn't be able to do it no matter what you guys tell me because I can't in any world see that being an honest thing to do.

Now how do I pull out a couple Ks out of my ass?

[mmhmm]

There's nothing unethical about it, rainy.  You're working there, you're doing your job and contributing.  As long as you're an employee of the company who's performing her function as she should, the benefits are yours.  You're earning them.

[Shooby]

You might jump ship in a heartbeat, but I can also guarantee the vast majority of employers have no problem kicking someone to the curb in a heartbeat either. It is a business contract. You agree to perform X work for x pay and benefits. Part of that benefit package is a retirement plan. They agree to pay you and you agree to perform under those terms. Period. While you are there on their watch, those terms apply. If and when you leave, then they no longer do. There is nothing "unethical" in that whatsoever.

[hoops902]

There's nothing unethical here.  The company has a way to protect themselves from this kind of thing via a vesting period.  They chose not to do that which means they're ok with people doing this essentially. 

[jinksd1]

I think of most major benefits as being earned before they're used. For sick/vacation time, you accrue it as you work, so you're using what you already earned along the way. For retirement savings, there's usually a waiting period of 6-12 months on the job for most companies, before you get a company match. That waiting period is when you "earned" the right to first contribute and get the match, and since you've continued working there, you're always ahead. Does that make you feel any better about it?

[Deleted]

Does the employer pay the match every time you make a contribution? Many employers only deposit the match once per year and you have to be an employee on 12/31 to receive the match. While the match is nice, even if I wouldn't get a match, I would still contribute to the plan and defer the income tax. Then roll over your balance to an IRA or your new employer's plan.

[Sunnyday]

May 7, 2014 18:12:10 GMT -5 jinksd1 said:

I think of most major benefits as being earned before they're used. For sick/vacation time, you accrue it as you work, so you're using what you already earned along the way. For retirement savings, there's usually a waiting period of 6-12 months on the job for most companies, before you get a company match. That waiting period is when you "earned" the right to first contribute and get the match, and since you've continued working there, you're always ahead. Does that make you feel any better about it?

yes, this makes sense to me, and it does make feel right about it.

Thanks for framing it that way!

[sarcasticgirl]

If you were already contributing max before you started looking for a job, would you stop when you start looking for employment? Of course not, so what is the difference?

Sent from my Nexus 4 using proboards

[truthbound]

It's got nothing to do with ethics. If it's legal then you do it.