General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums401k trickery: Is this legal?
My employer very quietly announced that not only are they dropping a number of fund options for the 401k plan, they are going to liquidate any investments in the discontinued funds and put them into funds of their choosing. BTW they don't match any contributions. Is this legal?
Nay
(12,051 posts)retired, my workplace dropped some options and added others to the 401K plans, but we decided which funds our discontinued fund money went to.
still_one
(92,421 posts)comparable like funds. However, if you do NOT like where the funds are being moved to, then you can move out now before the transfer occurs, and move them to funds you do prefer that are NOT being dropped. At least that is what I would do
LiberalFighter
(51,103 posts)I would think it would be the third party and they would be responsible for notifying you of any changes.
taught_me_patience
(5,477 posts)just go and choose the funds you want. I usually takes about an hour of your time.
RandySF
(59,264 posts)My employer's funds suck. Thankfully, I can access a brokerage account.
Algernon Moncrieff
(5,790 posts)Although your employer announced the change, generally 401Ks are managed by brokerage houses (e.g. Schwab, Fidelity, etc.). If you don't like where they've reallocated the funds, reallocate yourself, or see if there is a self management option.
Alternatively (TALK TO A TAX PROFESSIONAL FIRST!!!), see about liquidating the 401K; paying the tax; and putting the taxed proceeds into a Roth IRA at the brokerage of your choosing. You get tax free withdrawals at retirement.
Alternatively (TALK TO A TAX PROFESSIONAL FIRST!!!), several organizations such as Caesar's Palace and Harrah's have a high risk/high reward investment plan called "Roulette." I've heard good and bad things about it.