401k Disbursement Fee?

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jimmyrules712
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401k Disbursement Fee?

Post by jimmyrules712 »

My wife has a 401k at a company called Alerus Financial (http://www.alerusretirementsolutions.com). She left that job so I want to roll the 401k into her self employed 401k at Fidelity. When we called to initiate the rollover Alerus said they charge $50 fee for all disbursements. I'm assuming there's nothing we can do about that?

It was actually a decent 401k, had several vanguard admiral shares funds, but we really want to make our lives more simple and consolidate accounts.
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LAlearning
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Re: 401k Disbursement Fee?

Post by LAlearning »

You could ask to waive it.

You could also not care and pay it...unless her account is not even worth $50.

Or since you seem to be very bothered by it, do nothing and leave it.
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Topic Author
jimmyrules712
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Re: 401k Disbursement Fee?

Post by jimmyrules712 »

LAlearning wrote:You could ask to waive it.

You could also not care and pay it...unless her account is not even worth $50.

Or since you seem to be very bothered by it, do nothing and leave it.
I guess I'm surprised because I haven't encountered a fee for rolling over a 401k before, only for moving IRAs.
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CABob
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Re: 401k Disbursement Fee?

Post by CABob »

jimmyrules712 wrote: I guess I'm surprised because I haven't encountered a fee for rolling over a 401k before, only for moving IRAs.
Perhaps an account change was made when wife left employer and the administrator decided that they needed to charge fees for things that the employer was picking up previously.
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Re: 401k Disbursement Fee?

Post by pkcrafter »

Exit fees are quite common with a lot of brokerages and investment firms. If the funds are high cost and no other reason to hold, pay the fee and exit. If the company is reliable and the plan solid, you might decide to stay because of the possible advantage of higher asset protection in the 401k than in an IRA. Check with your state on this.

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Don Christy
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Re: 401k Disbursement Fee?

Post by Don Christy »

I would ask them to waive it, but wouldn't let $50 impact my decision.

OP said rolling to a 401k, not IRA, so presumably any protections are same.
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Re: 401k Disbursement Fee?

Post by placeholder »

You can ask Fidelity about reimbursing it which would be common for an IRA rollover but I don't know their policy for i401ks however asking can't hurt in fact if it's enough maybe they'd give a bonus:
https://rewards.fidelity.com/offers/cashrewards
Again no telling if it applies to those plans but asking is never a bad idea especially if there are other options.
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