401k moving investments without authorization

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
BoilerUp
Posts: 25
Joined: Wed Feb 17, 2010 1:44 pm

401k moving investments without authorization

Post by BoilerUp »

Last month we received notice that our 401k plan was switching custodians and that there would be some additional investment options and a few investment options were being discontinued. Any balances invested in the discontinued options were being transferred to similar new options. That all made sense to me.

I was invested in three different funds in my 401k, and none of those were the ones being discontinued. However, I discovered today that a portion of my funds in each of those three investments had been transferred into three additional funds, funds that I had not directed any investments into. The money that got transferred into these funds is approximately 20% of my 401k balance.

My account transaction history does not show when this transfer occurred. I'm concerned that my portfolio could have under performed during the time I was invested in these other funds. I also acknowledge that I could have over performed too, but there's no way to know without knowing when these transfers took place.

I was alerted to this by a coworker of mine who noticed this had happened to him, and mine was the same way. I suspect others in our company are affected as well.

Can anyone explain what might be going on here? Do 401k administers have the right to move investments around without authorization like this? I completely understand doing it automatically when investment choices change, but that isn't the case here.

I informed HR tonight about it and they put me in contact with someone with our 401k administrator whom I will call tomorrow morning, but I thought I would ask the collective wisdom here too for your thoughts.


TL;DR - 401k moved money around in my 401k account without my authorization (unrelated to a fund change). Can they do this?


EDIT: it may be some sort of online record keeping snafu. If I go to a balance transfer page on my online account, it shows just the three funds like I thought I would be invested in and not any of the other ones. I see what I can find out tomorrow.
retired@50
Posts: 3401
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: 401k moving investments without authorization

Post by retired@50 »

I think the more likely explanation is a mix-up in the back office somewhere. I don't think the 401k administrator did this on purpose.

Before getting too upset about it, try to remember the long term focus of your 401k investment plan, and the fact that you're not the only "victim" of this snafu. I understand you care about your money, as you should, but allow them some time to make things right.

Regards,
This is one person's opinion. Nothing more.
Topic Author
BoilerUp
Posts: 25
Joined: Wed Feb 17, 2010 1:44 pm

Re: 401k moving investments without authorization

Post by BoilerUp »

I got in touch with someone with the administrative company this morning and they looked into it and said it was a website error and no funds had been moved. It's still a bit unsettling, but that's just the digital world we live in I suppose.
Post Reply