Confused what to do with 401k

[stt816]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k. Also they are now charging me 25 a month for “plan fees”

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

What should I do?

[Explorer]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

They are also charging me 25 per month in the 401k plan. What should I do?

First, sorry for the hardship you are going through. You can't do much with 401(K) until you separate from the company. The 25 per month is that a fee for someone to manage your 401(k)?

[stt816]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

They are also charging me 25 per month in the 401k plan. What should I do?

First, sorry for the hardship you are going through. You can't do much with 401(K) until you separate from the company. The 25 per month is that a fee for someone to manage your 401(k)?

I was seeing you could cash out penalty free because of covid? Yes it says “plan fee”

[Spirit Rider]

I was seeing you could cash out penalty free because of covid? Yes it says “plan fee”

A CRD is only allowed, if you are a qualified individual.

• You, your spouse or dependent have been diagnosed with covid-19.
• You or your spouse have suffered adverse financial consequences from covid-19.

I don't know if the loss of a 401k or additional fees would rise to that level.

[mpochwat]

Usually there are somewhat high administrative fees to run a 401k plan.

For example, I run one for my own business and it costs >$200/month. So while paying $25/month admin fee to your other employer sounds a bit high, it's not that unreasonable compared to what you might pay through your own company. Just my 2c.

[ruralavalon]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k. Also they are now charging me 25 a month for “plan fees”

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

What should I do?

Usually there are somewhat high administrative fees to run a 401k plan.

For example, I run one for my own business and it costs >$200/month. So while paying $25/month admin fee to your other employer sounds a bit high, it's not that unreasonable compared to what you might pay through your own company. Just my 2c.

I agree.

The plan fees are less than 0.01% of your 401k account balance. Not high enough to worry about.

[an_asker]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k. Also they are now charging me 25 a month for “plan fees”

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

What should I do?

Usually there are somewhat high administrative fees to run a 401k plan.

For example, I run one for my own business and it costs >$200/month. So while paying $25/month admin fee to your other employer sounds a bit high, it's not that unreasonable compared to what you might pay through your own company. Just my 2c.

I agree.

The plan fees are less than 0.01% of your 401k account balance. Not high enough to worry about.

For OP, I am calculating plan fees > 1% not < 0.01%! $300/year on a $27k balance.

[stt816]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k. Also they are now charging me 25 a month for “plan fees”

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

What should I do?

Usually there are somewhat high administrative fees to run a 401k plan.

For example, I run one for my own business and it costs >$200/month. So while paying $25/month admin fee to your other employer sounds a bit high, it's not that unreasonable compared to what you might pay through your own company. Just my 2c.

I agree.

The plan fees are less than 0.01% of your 401k account balance. Not high enough to worry about.

For OP, I am calculating plan fees > 1% not < 0.01%! $300/year on a $27k balance.

Right I was thinking the same. Didn’t know if it’s possible to do a Roth rollover and if that would be a good choice

[an_asker]

I haven’t been back to work since March. I technically am still employed by my company but can’t contribute to my 401k. Also they are now charging me 25 a month for “plan fees”

I’m not sure when I’ll be back or if they’ll just lay me off. I have about 100k in my individual and roth accounts and 27k in my 401k...I started my own business just in case I don’t get back to work and have been doing decent with it. I created an LLC so I have a solo 401k

What should I do?

Usually there are somewhat high administrative fees to run a 401k plan.

For example, I run one for my own business and it costs >$200/month. So while paying $25/month admin fee to your other employer sounds a bit high, it's not that unreasonable compared to what you might pay through your own company. Just my 2c.

I agree.

The plan fees are less than 0.01% of your 401k account balance. Not high enough to worry about.

For OP, I am calculating plan fees > 1% not < 0.01%! $300/year on a $27k balance.

Right I was thinking the same. Didn’t know if it’s possible to do a Roth rollover and if that would be a good choice

I don't know the legalese to be 100%r sure, but my understanding is that you're stuck unless you quit the company. And if these fees are independent of the balance, it is worse for those with low balances.

[humblecoder]

I was seeing you could cash out penalty free because of covid? Yes it says “plan fee”

A CRD is only allowed, if you are a qualified individual.

• You, your spouse or dependent have been diagnosed with covid-19.
• You or your spouse have suffered adverse financial consequences from covid-19.

I don't know if the loss of a 401k or additional fees would rise to that level.

Not working since March would qualify as an "adverse financial consequence" in my book.

[Spirit Rider]

Not working since March would qualify as an "adverse financial consequence" in my book.

I assumed (maybe incorrectly), the "still technically employed" to mean still being paid.

[tashnewbie]

OP: based on your post, I assumed you’re maybe furloughed and not receiving a paycheck from your employer. Is that correct? If not, what’s the specific circumstances of your employment with that company?

[stt816]

OP: based on your post, I assumed you’re maybe furloughed and not receiving a paycheck from your employer. Is that correct? If not, what’s the specific circumstances of your employment with that company?

I'm a personal trainer. The gym/company is so unorganized. I stopped working in March and I'm still technically an employee because I receive unemployment benefits still and they're talking about bringing me back on. They barely talk to me and keep me up to date, but I'd like to stay with them for benefits such as insurance. The 401k isnt much, they only match 1k but I still take advantage of it..I'm not 100% counting on going back/them keeping me because we don't know for sure what the future of gyms will be...

Does that help any? Not sure what I should be doing with this plan.

[tashnewbie]

If you've not been receiving normal pay during your furlough, I'd say you definitely have experienced adverse financial consequences due to COVID. Sounds like you may be eligible to take a CARES Act distribution. I don't know any details about that and whether and when you might have to repay that.

Otherwise, if you're not eligible for a CARES Act distribution or don't want to do one, I don't think you can do anything with your 401k until you separate from employment with this employer.