Switching 401k providers - my options

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
renter
Posts: 562
Joined: Sat Aug 23, 2008 2:14 pm

Switching 401k providers - my options

Post by renter »

My employer will soon be switching 401k providers. Current 401k is a traditional, non-ROTH 401k plan. The new plan provider is a small outfit and the fund choices are a mix of a gazillion funds I've never heard of, some with the words "Index" in the name but my first reaction when I saw the list was to cringe. I should be learning more within the next month or so. But meanwhile I am wondering... in a situation like this, Im assuming that I'll receive a check in the mail (or can request one) when the old plan terminates and then will need to deposit the proceeds into the new plan within a certain number of days. If this is the case, can I simply take the check and roll it into a traditional IRA rather than into the new 401k plan, and still qualify for tax deferral? During this "gap" period, the terms of the old plan no longer seem to apply, and the terms of the new plan don't seem to apply yet as to the proceeds since I have not deposited the proceeds into the account yet. So I suspect the terms of neither plan will shed light on this question. My intuition tells me I could roll it into a traditional IRA but I don't know if this is actually correct. Does anyone have any idea? I would like to roll it into a Vanguard IRA if possible. By the way I did lobby to steer the 401k committee to Vanguard but to no avail.
gsmith
Posts: 215
Joined: Sun Mar 21, 2010 1:02 am

Re: Switching 401k providers - my options

Post by gsmith »

renter wrote:Im assuming that I'll receive a check in the mail (or can request one) when the old plan terminates and then will need to deposit the proceeds into the new plan within a certain number of days.
What you're describing is called a "triggering event".

While employer termination of the 401K plan w/o offering another one would be considered a triggering event, it's doubtful changing trustees would be.

This is not legal advice. Your plan administrator/HR should be able to get the answer for you.
Johm221122
Posts: 6395
Joined: Fri May 13, 2011 6:27 pm

Post by Johm221122 »

I been switched twice,never got check,they roll it in new plan
Default User BR
Posts: 7502
Joined: Mon Dec 17, 2007 6:32 pm

Post by Default User BR »

We had a merger of companies and a subsequent switch to a new plan. No rollover opportunity.



Brian
Topic Author
renter
Posts: 562
Joined: Sat Aug 23, 2008 2:14 pm

Post by renter »

Thanks for the replies.
User avatar
retiredjg
Posts: 54082
Joined: Thu Jan 10, 2008 11:56 am

Re: Switching 401k providers - my options

Post by retiredjg »

renter wrote:The new plan provider is a small outfit and the fund choices are a mix of a gazillion funds I've never heard of, some with the words "Index" in the name but my first reaction when I saw the list was to cringe.

If you see the word "index" more than once, it's a great plan!
Post Reply