Question : Why is my company renaming my 401k plan to a Retirement Savings Plan?
After a recent merger, my company is renaming my 401k plan to a Retirement Savings Plan. It seems a little odd. What kinds of legal issues, protections, ect. do I need to consider?
- asked by dandspach
All Answers:
Answer #1
prob some way for them to mess you over i wouldwatch it and question it..
- answered by brew m
Answer #2
I was actually going through the same scenario butthey gave me an option of choosing the retirementsavings plan or the 401k when I reach the age of21 and the reasoning being is because in a 401kyou can loose your money because your company hasprivate investors that put your money up from your401k into trading accounts to try and flip yourmoney and you could either loose it or they couldgain more for the company and with the savings youdont have to worry about loosing out which is muchbetter i think personally
- answered by Maine
Answer #3
A 401K is only legally allowed to make certainspecific investments on behalf of thecontributors. For example, a 401K manager is notallowed to invest in speculative instruments suchas buy/sell options... but a plain old RetirementPlan administrator has more flexibility and canlegally invest their contributors money invirtually anything.A 401K administrator HAS tohave certain credentials, maybe not a securitieslicense issued by the NASD, but at least a minimumof some kind of legitimate investment education. A Retirement Plan administrator doesn'tnecessarily have to provide extensivedocumentation as to his/her qualifications.Yournew plan may quite possibly allow much more riskyinvestments than you are willing to accept. Readall their info very closely so you can make aninformed decision. You may want to take yourretirement money and roll it over into anotherplan where you have more control, or, if that'snot allowed, quit contributing to your companyplan (though you may lose whatever they contributeon your behalf) and take the extra money in yourpaycheck (which has already been taxed) and investit regularly in a mutual fund (or 2 or 3) whichhas risks that you feel are tolerable.
- answered by plantguardian
Answer #4
these other people are on drugs...I've seen 401kplans named retirement savings plans and evenprofit sharing plans. The name means absolutelyNOTHING! Check out the plan document, or summaryplan description, of the new plan and see if theprovisions are the same. If so, then sleepcomfortably. If not, then they will give you theopportunity to roll your money over into an IRAinstead of into the other plan. Your choice ifyou want to do that. Generally when a mergeroccurs the companies also merge retirement plans. This is likely what happened in your case. Andbtw no special training is needed for directingthe investments of any type of plan. You simplyneed to invest prudently....I've seen smallbusiness owners invest for their participants anddo quite well...and I've seen those knuckleheadswith licenses do worse than they would have ifthey were simply in a 60/40 Equity/Bond split.
- answered by digdowndeepnseattle
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measure and fulfill your financial needs
