| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1056.1 | | PADC::KOLLING | Karen | Fri Feb 21 1997 13:46 | 9 |
| Re: .0
I had the same number done on me by Adobe. I finally wrote
to the Treasury Department (or some place similar, I forget)
and got told, tough luck, there is nothing in the law that
requires prompt action. In my case, I was going to transfer
it into CDs, and the interest rate dropped substantially while
Adobe was sitting on the money.
|
| 1056.2 | Nothing on the Federal level yet | NCMAIL::YANUSC | | Fri Feb 21 1997 14:08 | 9 |
| RE: .0
This is another one of the areas that the Feds are looking into for
some sort of protection for small investors. At this point in time,
though, there is nothing on a regulatory level that will protect your
wife (and specifically your lost income during the recent stock market
upswings.)
Chuck
|
| 1056.3 | | PCBUOA::BAYJ | Jim, Portables | Fri Feb 21 1997 17:13 | 12 |
| So, let me understand this. If you leave Digital, and don't roll your
401K over, it will just sit there and "collect interest", as it were.
But at other companies, its possible that when you leave, the account
"freezes"? What does that mean? Your funds are invested in
something, like a fixed interest fund, or a mutual fund. A fixed
interest fund continues to collect interest. A mutual fund changes
value with market fluctuations. Does this mean that your monies are
pulled out of the funds and essentially devalue over time?
jeb
|
| 1056.4 | | DECCXL::OUELLETTE | | Fri Feb 21 1997 18:42 | 3 |
| It can be worse than having the money put into an escrow account.
The money can earn zero interst while frozen... as I understand it.
One more thing to write your senator & representative about changing.
|
| 1056.5 | RE: .3 | WMOIS::UGUR | | Mon Feb 24 1997 10:37 | 15 |
| >> So, let me understand this. If you leave Digital, and don't roll your
>> 401K over, it will just sit there and "collect interest", as it were.
Yes, the same plan you have chosen while you were working would be in
effect, remember, this does not always warrant positive return.
What I meant by "freezing" was that the money invested in different
funds while she was working did not return any gain or loss between her
last day of work and the the day the account was rolled over to an IRA
account, equivalent of being kept in a safe box.
|
| 1056.6 | | PCBUOA::BAYJ | Jim, Portables | Mon Feb 24 1997 13:47 | 10 |
| Digital's benefits may not be as generous as they once were, but boy,
it sure sounds like there's some real crud in the "outside world" by
comparison.
Imagine if you didn't know about such a policy, and thought you could
leave your 401K untouched until retirement?!?!? Do they still send
statements? I guess you'd eventually catch on, but brrrrrrrr!
jeb
|
| 1056.7 | | DECCXX::WIBECAN | That's the way it is, in Engineering! | Mon Feb 24 1997 14:29 | 15 |
| >> Imagine if you didn't know about such a policy, and thought you could
>> leave your 401K untouched until retirement?!?!?
I think you misunderstand. Nobody said anything about whether you could keep
the money in the other company's 401K plan until retirement. The question was
about promptness in complying when you wanted to roll the money over into
another account.
Either the company will allow you to keep the 401K money in the investments
it's currently in, or you can roll it over elsewhere. If you want to do the
latter, there appear to be some significant delays between taking the money out
of the investments and putting into the "elsewhere," but I would hope these
delays don't amount to years.
Brian
|
| 1056.8 | | PCBUOA::BAYJ | Jim, Portables | Tue Feb 25 1997 11:46 | 16 |
| Yeah, but what if you start a new job, and don't feel comfortable
rolling over your present 401K into the new company's 401K?
Well, bad example. I guess ANYTHING would be better if your 401K is in
stasis. How about if your new company doesn't offer a 401K? Or my
wife's situation, where she wasn't elgible to participate in the new
401K for six months.
I guess there are always alternatives, but it sounds like you have to
be very careful. Of all the investment vehicles out there, I never
thought of a 401K as having that much risk associated with it.
Silly me.
jeb
|
| 1056.9 | | DECCXL::WIBECAN | That's the way it is, in Engineering! | Tue Feb 25 1997 13:41 | 16 |
| >> Yeah, but what if you start a new job, and don't feel comfortable
>> rolling over your present 401K into the new company's 401K?
>> How about if your new company doesn't offer a 401K?
>> Or my wife's situation, where she wasn't elgible to participate in the
>> new 401K for six months.
In all these cases, then you:
a) leave it invested in the old company's 401K, or
b) roll it over into an IRA.
Again, nobody said you couldn't do (a), they only said there was a several
month delay in doing (b) or a rollover into another 401K.
Brian
|
| 1056.10 | reminders | 2155::michaud | Jeff Michaud - ObjectBroker | Tue Feb 25 1997 15:43 | 8 |
| > b) roll it over into an IRA.
make sure you roll it over into a distinct rollover (or sometimes
called "transfer" or "conduit") IRA.
Also make sure the money is transfered from your 401k, pension,
etc directly to the IRA, do *not* have the check made out in
your name.
|
| 1056.11 | | MKOTS3::BREEN | Sans Doute | Thu Feb 27 1997 18:51 | 3 |
| One starts to think about maxing a loan just prior to leaving in this
situation. Then when they are ready to transfer you swap checks. I
can just imagine the weeping and whining this would entail.
|