Hello

Both my husband and myself are on J-1 teaching visas. We have just started our third year with the school and have been informed that we now have to make contributions to a retirement plan. As exchange teachers on J-1, are we obliged to have a retirement plan? It seems that since we are not permanent residents, we are being asked to pay towards something that we may not benefit from. Please advise.

After two years on J1 as teacher, you will be resident for the purpose of taxes in the third year. It is your choice to invest in the retirement plan. You can refuse to invest in the retirement plan.
To learn more about 401(k), read Your U.S. Tax Return: Elective Deferrals 401(k) Plans (http://taxipay.blogspot.com/2008/08/elective-deferrals-401k-plans.html)