Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Greetings All, Bill(w401k),
I have recently taken a new position with a company that has a 401k plan but is not as good as my former employers plan. The new plan matches my contribution dollar for dollar up $1000 annually. Sounds like I would atleast get $1000, right? Wrong it will be made in the stock of the company (could be good, could be bad). I prefer the cash or a 50 - 100% match in cash. There are also operating expenses not payed by the employer, .55% for an index fund and 1.50% for a sml company growth fund. OOCH! I think there is even some front/back end fee's for these funds. YUK! I plan to leave my 401k savings from my former employer where it is at least for the time being. I presume that if I rolled my 401k to the new plan I would have to pay the fee's, front/back end expenses. I believe that all the expenses are paid or waved by my former employer. My questions are: Is there any way to continue to contribute to the old plan and not the new? If I move it to an IRA can I contribute to it? Once rolled to an IRA can I roll it back into another 401k plan if I leave my current new employer?
For now I will leave my 401k monies in the old plan and start maxing on the new one despite the fee's. It's the only tax defered I can do beside annuity.
Thanks for the heads up on the lack of communication while leaving 401k funds at the former employers plan and any help anyone has to offer to my questions.
All the best Head1st.
Print the post  


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.