Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: stan002 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 294  
Subject: Bad 401(k) plan Date: 7/31/2004 7:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
We finally (after 6 months of asking) got access to my wife's 401(k) plan at one of her jobs. We had gotten a statement a few weeks ago, listing investment options I couldn't find symbols for. We found mutual funds with similar names, but with prices about 3 times the prices shown on the statement.

Anyways, to cut a long story short (too late), the investment company (NY Life Investment Management) has options in the 401(k) like "XXX Account", where XXX is the name of a mutual fund run by a separate company and Account means that NYLIM takes 1.35% per year of the balance. This is true even for the money market account, the only money market account with a negative interest rate I've ever heard of.

DW's company matches 50% of contributions up to 5% of salary. We also max out a Roth IRA for each of us and the 403(b) at her other job.

My questions are:
1) It is probably worth contributing up to the maximum matched, right?
2) Is it worth contributing beyond that for the tax deferrment?
3) Other than her leaving the company, is there any way to get the money transferred out of that account and into one with less onerous terms? (for instance a self directed IRA at a low cost brokerage)
4) If she could talk the company into it, could she quit, roll over the IRA, and then rejoin the company?

Thanks,
Steve
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement