Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hello:

I would like to sign up with a 401K, unfortunately the one the company I work for has is governed by an outside company that is very corrupt.

I have been trying to find a private 401K, but they all seem to be for businesses and not individuals.

Are there any such thing as a private/individual 401K plan? If so, where do I find one?

If not, what are some options that work like 401K's??

Simple answers help me the most, as I do not understand financial lingo.

:0)

Thanks!
Print the post Back To Top
No. of Recommendations: 2
What makes you think the plan administrator for your employer's 401k is corrupt? That's a pretty serious accusation. As you've discovered, Traditional 401k's are intended for employers to offer to employees. If you were self-employed, there's a Solo 401k program if you have no employees. Otherwise, you can open a Traditional or Roth IRA.

Fuskie
Who notes most all 401k plans are administered by an outside company, and while some have better options and terms than others, I'd be surprised if your employers' plan was administrated by a corrupt company...

-----
Ticker Guide for The Walt Disney Company (DIS), Orbital ATK (OA), Blue Nile (NILE)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disclosure: May own shares of some, many or all of the companies mentioned in this post (tinyurl.com/FuskieDisclosure)
Print the post Back To Top
No. of Recommendations: 0
Some 401k plans do have high expenses and sometimes poor investment choices. But employers match and large pretax contribution limit make them attractive. When you leave the company you can roll those funds over to a self directed IRA or even convert them to a Roth. These features can make a mediocre plan worth participation.

Contributions to a Roth IRA is your best alternative if you qualify or Traditional IRA if the contributions are deductible for you.

As an alternative, the best you can do is usually long term buy and hold in a taxable account. Finding stocks you can really hold long term can be not so easy (as some will nosedive from time to time making selling and paying taxes look better than holding onto losers). If you do it right, you pay taxes only when you sell and then at capital gains rates. That makes them more attractive than 401k or Traditional IRA where gains are taxable at ordinary income tax rates when you take distributions according to the rules in retirement.
Print the post Back To Top
No. of Recommendations: 2
I would like to sign up with a 401K, unfortunately the one the company I work for has is governed by an outside company that is very corrupt.

Corrupt in running the 401(k)? If so, you should report the plan administrator to the Department of Labor.

If it's just that you don't agree with the practices of the company that is the administrator, you will need to decide if you can swallow your dislike enough to take advantage of the benefits the 401(k) can provide you, such as any matching money from your employer, and the tax advantages.

I have been trying to find a private 401K, but they all seem to be for businesses and not individuals.

That is correct. There is no such thing as 'private' 401(k).

Are there any such thing as a private/individual 401K plan? If so, where do I find one?

No, 401(k)s are only offered by employers to employees. If you had your own business, you could have your own 401(k), and make contributions as both an employee and the employer. Or you could change to another employer, who at least for now, has chosen a 401(k) administrator that you feel is not corrupt. But if you want to remain with your current employer and not have a side business, you are limited to the plan administrator that your employer has chosen.

If not, what are some options that work like 401K's??

IRAs, but they have significantly lower contribution limits of $5,500/year ($6,500/year if you are 50 or older) vs. $18,000 ($24,000 if you are 50 or older) for the 401(k). Additionally, you are losing out on any matching money that your employer provides. Plus, 401(k)s can get 'institutional' pricing on investments, which means that more of your money will be working for you. And, since the money comes out of your paycheck before you ever see it, you don't have to be as disciplined about making contributions.

I would strongly suggest that you not toss away the opportunity of investing through a 401(k) just because you don't like the company that your employer has chosen to administer the 401(k) unless you have specific concerns about how they are administering the 401(k) plan for your employer. If that is the case, then I would strongly urge you to report the plan administrator to the Department of Labor.

AJ
Print the post Back To Top
No. of Recommendations: 0
To make a long story short, I "opted out" of their 401K, as instructed, per the companies instructions on how to do it, when I started this job. They saw fit to go ahead and take money out of my pay without my consent, regardless, and refuse to refund it.

Lawyers wont help, as I have contacted several. Apparently I'm not rich enough, powerful enough, or worthy of any decent human obligations for any kind of justice.

So now they have stolen money from me and refuse to give it back, and there's not a damned thing I can do about it.

I call that CORRUPT.
Print the post Back To Top
No. of Recommendations: 0
Thanks for the info.

As I stated in another response to this, the company is corrupt and no one will do anything about them. They have stolen money from me and refuse to refund what they have stolen from me.

They are definitely corrupt.
Print the post Back To Top
No. of Recommendations: 0
They saw fit to go ahead and take money out of my pay without my consent, regardless, and refuse to refund it.

Some companies do have automatic 401k plans that are essentially not optional. So perhaps a mistake was made meaning you are participating in a 401k and the funds are yours whenever you leave the company.

If the company cannot find records of your money, you should call the local police and file a theft report.

As its a federal program, you can also call the local office of your Congressman (or woman). Most have good connections in the federal govt and can help you find the right people in govt to help. Perhaps a letter from the feds will get their attention and cause them to find your funds.
Print the post Back To Top
No. of Recommendations: 5
To make a long story short, I "opted out" of their 401K, as instructed, per the companies instructions on how to do it, when I started this job. They saw fit to go ahead and take money out of my pay without my consent, regardless, and refuse to refund it.

Okay, so your company is one of the companies that has chosen to automatically enroll employees in the 401(k) plan. And your beef is that, despite what you thought you told the company, they went ahead and withheld money from your paycheck to deposit in a 401(k) account for you.

- Did you keep copies of your instructions to the company to not take the contributions out of your paycheck?
- Did you complain to the company's HR department about the contribution being made immediately upon the first paycheck having a contribution withheld?
- Do you have that complaint in writing, including the copies of the instructions to 'opt out'?

Lawyers wont help, as I have contacted several. Apparently I'm not rich enough, powerful enough, or worthy of any decent human obligations for any kind of justice.

Not really. It's just that the rules are very clearly set out in Federal law about how these type of contributions are to be made. Depending on the answers to the previous questions, you may not have a case. It may be that you just haven't found a lawyer who is corrupt enough to take your money even though you don't have a case.

So now they have stolen money from me and refuse to give it back, and there's not a damned thing I can do about it.

Really? Stolen money from you? Isn't the money in an individual account with your name on it? And if you quit your job, you can get the money back, either to roll over into an IRA, to roll over into another 401(k), or to take the money and spend as you wish, subject to paying any taxes and penalties.

I call that CORRUPT.

If you choose to believe that the 401(k) administrator is corrupt, you are placing the blame on the wrong party. The 401(k) administrator is not corrupt. They are merely following the instructions of your employer. If there is anyone who you have a beef with, it's your employer.

AJ
Print the post Back To Top
No. of Recommendations: 1
As I stated in another response to this, the company is corrupt and no one will do anything about them. They have stolen money from me and refuse to refund what they have stolen from me.

They are definitely corrupt.


No, the 401(k) administrator is not corrupt. They are following Federal law and the instructions your employer has given them with the money that your employer sent the administrator after withholding it from your paycheck. Your beef is with your employer, not the 401(k) administrator.

AJ
Print the post Back To Top
No. of Recommendations: 1
Some companies do have automatic 401k plans that are essentially not optional. So perhaps a mistake was made meaning you are participating in a 401k and the funds are yours whenever you leave the company.

If the company cannot find records of your money, you should call the local police and file a theft report.

As its a federal program, you can also call the local office of your Congressman (or woman). Most have good connections in the federal govt and can help you find the right people in govt to help. Perhaps a letter from the feds will get their attention and cause them to find your funds.


The OP would have a better shot at starting with his/her employers' HR department. If the withholdings were made this year, the OP may be able to get the company to tell the 401(k) administrator to shut down the OP's 401(k) account and refund the contributions. (If the contributions were made prior to this year, there would be issues with the OP's prior year's tax filings.) Since the administrator is acting upon the direction of the employer, the employer needs to be the one to tell the administrator that a mistake was made in withholding the contribution in the first place, and tell the administrator to return the contributions to the OP. Absent a court order, which the OP hasn't found an attorney to help him get, that's likely the only way that the OP will get the contributions reversed.

AJ
Print the post Back To Top
No. of Recommendations: 2
So now they have stolen money from me and refuse to give it back

The money is not stolen if it is in a 401k plan in your name.

Someone should be able to provide a statement saying where your funds are. Most 401k plans issue reports quarterly and many allow you to look at current balances on websites.

Be patient and you will probably get a statement for the account. Or ask the right people (your HR dept or 401k administrator) and they can probably tell you how to look at the account on the internet.
Print the post Back To Top