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Subject:  Re: My company is changing 401k providers Date:  11/4/1999  5:15 PM
Author:  KGWood Number:  15116 of 88758


If you can NOT move your 401k $'s to an IRA and have to go into the new 401k, I would recommend that you pay close attention to the investments they put you in to in the new 401k. For simplicity's sake, I would assume (note, this is only an assumption on my part) your employer will be offering similar investment options in the new plan as were in the old plan (be they good or bad is irrelevant for my point). When they convert to the new plan, they will "map" the old investment options to hopefully similar ones in the new plan. Assuming, again, that your investment options are mutual funds - your employer will try to select investment options in the new plan that match as closely as possible the old plan's options. This is not as easy as it may sound. To illustrate: you may currently have a Large Cap Growth fund option - this may be mapped to a fund in the new 401k plan which is also Large Cap, but is a Large Cap Value or Large Cap Blend (combination of value and growth stocks). Those are materially different styles - possibly different enough that you don't want your money in them. I'm sure it won't be difficult to change your investment options should you desire to once you are in the new plan.

Just thought I'd give you this "head's up", FWIW.


P.S. Your question sounds like you would like to have more control over these investments (very Foolish!). Maybe your new 401k will offer what is currently still a rare - but increasingly popular - investment option: a "brokerage window." This is essentially a brokerage account in your 401k. A neat idea - I hope my employer offers one soon. Ask your HR department.
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