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For my 401K, I am in Van Kampen's Equity Growth and have been since near inception (around 7/98). I'd like to protect my FF investments under 401K when they start to accumulate substantially. Is there a history of

mutual fund performance weakening with age/bulk. If so, what's the time frame for drop-off? Should I switch my 401K protection from the VK fund to my Datek account with my FF at some point? I really don't know much about taxes and shelters.

-Mark
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I have no idea how you can "switch" 401k "protection" from one investment to another. I think you may be misinformed or confused.

Your 401k is sponsored by your employer. As such, you can only use the investment vehicles that the 401k plan provides. You can't transfer your 401k money to an IRA without leaving your current employer. You can't transfer non-401k or non-401k-rollover money into a 401k. You can't make lump sum investments into a 401k, unless you transfer monies from a previous 401k.

So, what are we really talking about here?

Zev

PS. The library has many books on 401ks, and how they are used.
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I always assumed what your response stated, until recently another employee indicated that we could indeed choose any fund as a 401K whether it's in the plan or not (she gave the example of changing employers but not the fund to which you contribute). As such, I assumed that I could transfer monies into and out of a 401K plan in the same manner as transferring monies from one 401K fund to another.
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<<I always assumed what your response stated, until recently another employee indicated that we could indeed choose any fund as a 401K whether it's in the plan or not (she gave the example of changing employers but not the fund to which you contribute). As such, I assumed that I could transfer monies into and out of a 401K plan in the same manner as transferring monies from one 401K fund to another.>>


I think your fellow employee is confused.

After you terminate employment and rollover the dollars into an IRA, you have the universe of stocks, bonds, and mutual funds to choose from. Until then, a 401(k) plan is "sponsored" by a company. They set a number of the rules and limitations both to control costs and to follow IRS guidelines and Congressional laws. If your company has a set number of investment options, those are the investment options from which you have to choose.
If you rollover the money from Company A's 401(k) plan to Company B's 401(k) plan, you have the options in Company B's plan.
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