I recently became eligible for my company's 401(k) plan. The company financial adviser has been chasing me down for over a month to file and I've kept waving him because I was job hunting and had no intention of staying.
He did say that I didn't need to contribute to it, but that I needed to at least fill out the forms and indicate that I wouldn't be contributing at this time. Additionally, he said the company makes small contributions regardless of if I put in none.
Well, I put in my two weeks last week and the CEO came up to me today and mentioned the 401(k) paperwork. I reminded him that I didn't see the point since I was leaving and he strongly requested that I fill it out anyway. When I look at my paycheck, it seems that the company has contributed an nontaxable amount of around $65 (not out of my income, just a company contribution).
While I don't mind simply filing out the paper work, I'm wondering if there is any hassle(s) I should be aware of by filing out my first 401(k) for $65 and leaving in a week. If it's going to be some tax headache down the road for me, I'd rather push back on the CEO and restate that I'm leaving in a week and this isn't worth my time.
Note: If it matters, the forms are for a Schwab Personal Choice Retirement Account (PCRA) w/ Limited Power of Attorney (LPOA).