My employer plans to switch its 401k administrator
My employer (mega corp.) plans to switch 401k administrator soon. The old plan is quite good with many funds with low ERs and I like it. Both plans are well known and well received by individual investors. I plan to retire soon and am wondering about the cons if I leave the employer before the switch-over is completed. I assume the employer picks up a large portion of the expense for running the 401k. If I stay with the old orphaned plan, will the 401k expense go up without company’s subsidy? I don’t want to rollover to IRA because of the ERISA protection of 401k. I am in California.
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-07 18:00
No way to answer this question. Even if you could stay with the old (orphaned) plan, it may be difficult to determine how the investment options and expenses would evolve compared with the new plan. Employer may not even know at this point, and if you have a choice now and remain with the old plan, that could be a one time choice.
Permalink Submitted by learner on Fri, 2025-02-07 20:36
If the transition of the 401k plan administrator takes place after I leave the employer, will the new plan take over my old 401k account? Are there any regulations applicable to this case?