Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
I have a 401K with my current employer. It is a bare bones plan with only 7 choices for where to put the money.

The choices are:
1.) a money market fund paying less than 0.50% (LUGXX)
2.) two majorly underperforming tech heavy mutual funds (ACEGX, ALTFX)
3.) a horribly underperforming bond fund (VKHYX)
4.) an uninteresting overseas mutual fund (FAOAX)
5.) two other funds that are also not to my liking (OPTFX,VAGAX)

I am very unhappy with these choices and I'm particularly unhappy that I can't invest in an index fund. A few employees including myself lobbied pretty hard to include an index fund when the plan was intitiated, but we were ignored.

Recently I've stopped contributing new money into this plan, allowing it to be taxed and then investing it on my own. I've done way better than anything I could possibly earn using these 401k choices, even after considering the 401k tax benefit.

I'd like to take the existing money in the 401K account and roll it over directly into my IRA where I can have more investment choices. Note I am NOT planning to quit my company, but only to stop participating in its 401K.

Anyone know if the IRS will let me rollover my IRA even though I'm not switching employers?

Comments on your opinion on the quality of these 401k investment choices are also welcome.
Print the post  

Announcements

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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.