Hi Reddit,
I work for a large conglomerate company with many parts about 10 I think. We have a 401k as part of our benefit package that is sponsored by the parent company. I actually work for one of the small companies that are part of that conglomerate, the part I work for got sold off and out of the conglomerate to my surprise many other people's too, it was just out of the blue. We were notified by email that we could no longer make 401K contributions the next day after the company sold.
I set up a IRA at Vanguard the morning after the sell off/buy out, called the bank that manages the 401K to get instructions on moving my retirement over to the IRA and was told I wasn't allowed. I reached out to Vanguard for advice and they called the managing bank and we were told the same thing.
I guess I've always assumed if an employee left a company for whatever reason their retirement benefits 401K could be moved to whatever IRA company they wanted? I've been checking the status of my 401K and the parent company logo is still on the 401K status page, the only option I can make is "Withdraw" the amount and pay the federal and state taxes and early withdraw penalties.
The company I work for was bought by a equity firm, the admin of both companies say they are working on a plan for our retirement benefits and healthcare benefits. I'd rather move my retirement benefits to Vanguard where I have a little more control and not being held hostage by a very large bank like I am now.
Is it normal to not be able to move/rollover 401K benefits to a different retirement account? I thought by now it would be normal for this type of thing to occur.
Thanks.
Submitted December 07, 2019 at 08:15PM by Wretchfromnc https://ift.tt/36eP8oA
