TMF Pixie wrote:
"As of 1/1/87 and through 12/31/96, tax-exempt employers were not allowed to adopt 401k plans. Some (a very few), though, had adopted 401k plans before 1987. Those plans were allowed to continue. Additionally, on 1/1/97 non-governmental tax-exempt employers were again allowed to adopt 401k plans. Evidently your employer is one of those that had a 401k plan in existence before 1/1/87."

Hmmm... we have a state-mandated 401(k) plan for all law enforcement officers. I wonder if a new police department were formed, how would they follow state law?

If the only advantage to taking the money out of 401k is the wider variety, we'll leave it alone. I'm happy both the performance of the options available and plan on leaving it all in an S&P Index fund.

I wasn't sure if there were some tax or dollar issues that made it advantageous to move it to an IRA. Maybe one day she'll resume employment with a government agency (NC state and local government has a 401k through http://nc401k.bbandt.com) and can resume contributions to the original plan.

Thanks!