Second job 401k question

[FamilyOfThree2014]

Hello,

I currently do 4% into my jobs 401k plan. My employer matches 3% and puts a yearly bonus amount into the 401k. I just picked up a second job which offers a 401k plan and no match. Can I also put money into and start a 401k plan with this company? The second job I picked up is a 10 month project which may or may not be extended; however, the 10 months is guaranteed. What can or can't I do and what would you do?

The second job is just going to be an extra income for us to finish paying debt and increase savings. Thanks for any advice on this subject!

[disneysteve]

Why would you want to contribute to the 2nd 401k? There is no match, so no benefit there. I think it would just complicate things.

Are you funding a Roth? If not, I'd do that first. If you still have additional money to invest for retirement, why not just use the account you already have?

The only thing that might make sense is if the investment options are a lot better at the new job.

[FamilyOfThree2014]

disneysteve,

I think sleep deprivation has gotten to me (haha). After I posted and re-read what I had written, I said to myself. Why would I put money into this, there is no match. Thanks for the response anyways though. It's one of those days.

[TBH]

I agree with the conclusions you've already drawn.

Congrats on the second job!

[autoxer]

Why would I put money into this, there is no match.

Even without a match, there is still a tax benefit. Technically you can fund multiple 401k plans, but your total contributions across all 401k accounts cannot exceed $17,500 for the year. One reason that you might prefer the 401k with the new job, is if it offers lower fees or better investment choices.

Another option is to just bump up your contribution percentage on your existing 401k, because you don't need as much take home pay from that job.

[FamilyOfThree2014]

Thanks TBH!

Thanks for the extra information autoxer.