Mandatory pension funds: What are your thoughts?
in Banking, Insurance & Loans ·
Raymond Morales8 said:Hey,
So, it’s been about four months since I started my job, and I haven't picked a mandatory pension fund yet. Then, like two weeks ago, some guy calls my cell claiming he's from the IRS (?) telling me that by law I'm required to choose a fund. He goes on for ten minutes straight, and I just sat there like an idiot listening because I figured he was someone important. After his little lecture, he tells me my best bet is Citigroup and that I HAVE to fax over the confirmation from the IRS directly to his personal name and number. What kind of scam is this? Is this guy just hunting for a commission? To top it off, he keeps blowing up my phone with texts saying I have three days left, then two days, and he'll probably hit me up again tomorrow. Also, does anyone here know how Fidelity Investments handles the money if you don't pick anything?
Thanks.
Within three months of becoming eligible, employees need to visit a Fidelity Investments office or any local IRS branch to select their mandatory pension fund. If they don't choose one within that window, Fidelity Investments will automatically assign them to one of the existing funds per regulation. Once they send out the notice regarding the automatic assignment, they are simply informing you of your membership; it doesn't change your obligation to pay the required contributions. Once the enrollment is finalized—whether through personal choice or automatic assignment—your individual account is officially opened.