Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Just curious, if you wish to share it, why did you pick 3 and not a longer period?

It is an unqualified plan. Even though the plan assets are in your name, it is very clear that the plan assets are not vested. I have worked for a company that went bankruptcy. Losing everything contributed to the plan is quite possible. My company offers access to the 409A plan as a retention incentive for engineering level, but the vast majority of people covered by these plans are high level management. The terms of the plan are inflexible and are targeted for the majority of the participants which are executives.

I am not comfortable with having a large amount funds in the plan or for an extended amount of time. We have only recently become eligible for the plan and are nearing retirement. Where I see it fitting in our plan is a transition buffer between leaving work and when we starting to receive Social Security and a (small) pension.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.