Switching 401(k) providers (plan amendment)--do I have to transfer old assets?

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BusterMcTaco
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Joined: Tue Jul 11, 2017 6:36 pm

Switching 401(k) providers (plan amendment)--do I have to transfer old assets?

Post by BusterMcTaco »

I switched for an individual 401(k) plan with E*TRADE to a "regular" (I'm not even sure what one would call it) plan with Slavic since I now have statutory employees. Slavic had me sign the amendment and will be requesting an asset transfer from E*TRADE (but the plan administrator is me, so I think they are going to request it from me and I initiate the transfer), but it occurs to me that I prefer not to transfer the assets, if that's an option, because Slavic has an AUM fee under their plan.

Is this allowed? Can I keep assets in the E*TRADE accounts even though the plan is now with Slavic? I'm guessing the answer is "no", but hoping some of our ERISA specialists may know for sure.
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