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Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 1:21 pm
by Anonymous User
I know that term clerks don't get a Thrift Savings Plan, but are there any retirement -- or investment-type benefits that clerks can take advantage of, or is it just one of those deals where you suck it up and find your own savings vehicles outside of the employer. I'd be curious to hear stories from term clerks as to different strategies.

Re: Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 2:15 pm
by nixy
Pretty sure you just suck it up and go outside the employer, but if anyone else knows any differently it would be interesting to hear.

Re: Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 2:21 pm
by AUSAorBust
There are no employer retirement benefits for term clerks. You're on your own. But don't forget to max your IRA.

Re: Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 3:38 pm
by Fireworks2016
This is something that has really irked me. People often clerk for 2-3 years -- what is the rationale for not offering them some form of retirement vehicle?

Re: Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 6:00 pm
by nixy
I don’t think any employers offer temporary employees retirement options. Many employers make *permanent* employees work for them for at least 2 years before they can vest in the company’s retirement plan - that’s very common. That would knock out almost all term clerks out of the pool. It’s not like you can’t invest in long-term stuff on your own.

Re: Retirement benefits for term clerks?

Posted: Sat Apr 13, 2019 9:19 pm
by Anonymous User
My state clerkship is actually earning me a State pension which I'll apparently be able to collect from.

$20/month in 40 years. Yay.

Re: Retirement benefits for term clerks?

Posted: Sun Apr 14, 2019 10:42 am
by polareagle
If you sign up for a high deductible health plan with an HSA, you can set aside $3,500 pre-tax. If you save what's in your HSA until retirement and use it for medical expenses, they're actually the most tax-advantaged retirement vehicle. (The funds go in without being taxed, grow without being taxed, and then can be withdrawn without being taxed.) https://www.biglawinvestor.com/stealth- ... count-hsa/ Granted, there's nothing employer specific about these--you can do it with an HDHP with any employer--but at least you can set it up to come out of your paycheck.