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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: dragoncar on February 20, 2015, 05:55:50 PM

Title: Employer is Changing 401k Administrator
Post by: dragoncar on February 20, 2015, 05:55:50 PM
So I got word that we are changing 401k administrators.  Details are thin.  Right now I have my funds in a brokerage window through TDAmeritrade.  I'm worried about how that will translate to a new administrator who may not allow a brokerage window at all, or might use a different brokerage.  Any insights?  Will I be forced to liquidate?

I spent some time Googling around, but didn't see anything about this.  I'll once the details come through and maybe this thread can become the premiere internet resource for brokerage windows during 401k administrator changes!
Title: Re: Employer is Changing 401k Administrator
Post by: dunhamjr on February 20, 2015, 06:11:14 PM
When my company did the same thing nearly every fund option changed.

Everything was liquidated and swapped to a new best match fund.
Title: Re: Employer is Changing 401k Administrator
Post by: Middlesbrough on February 20, 2015, 06:52:06 PM
When my company did the same thing nearly every fund option changed.

Everything was liquidated and swapped to a new best match fund.
We did the same thing a year and a half ago. We were only out of the market one day with the switch. We now have much better investment choices!

Good luck to you Dragoncar!
Title: Re: Employer is Changing 401k Administrator
Post by: MrFrugalChicago on February 20, 2015, 07:36:05 PM
Last time I did this I got way worse options. Think the company did it to save $100 per employee. Raised our fees by an average of 1%.

Penny wise, pound foolish!!!!

Hope yours goes better ;)
Title: Re: Employer is Changing 401k Administrator
Post by: sheepstache on February 20, 2015, 09:38:35 PM
I think you're just asking for anecdotal info? When my company did that the new contributions had to go into the fund options of the new company, but we could keep our already accumulated monies at the old one, or transfer them over.
Title: Re: Employer is Changing 401k Administrator
Post by: dragoncar on February 20, 2015, 09:42:52 PM
I think you're just asking for anecdotal info? When my company did that the new contributions had to go into the fund options of the new company, but we could keep our already accumulated monies at the old one, or transfer them over.

Yeah, specifically what happened with brokerage windows.  Thanks all for the anecdotes so far!
Title: Re: Employer is Changing 401k Administrator
Post by: Earthling on February 21, 2015, 05:24:04 AM
Great topic. As it so happens, the Weekend investor section of today's WSJ has an article entitled "How to Lobby for a Better 401(k)". Here's the link, but it is behind a pay wall so may not appear on your end: http://www.wsj.com/articles/how-to-lobby-for-a-better-401-k-1424459507?mod=WSJ_hps_MIDDLE_Video_Third.
Title: Re: Employer is Changing 401k Administrator
Post by: moustache1979 on February 21, 2015, 05:30:44 AM
My brokerage mapped over to a new brokerage window.  Nice thing that happened was trade cost went down to $6.25 from like. $20.00

Title: Re: Employer is Changing 401k Administrator
Post by: dragoncar on February 21, 2015, 12:48:56 PM
My brokerage mapped over to a new brokerage window.  Nice thing that happened was trade cost went down to $6.25 from like. $20.00

That's nice to hear -- sounds like there are many ways to do it, and it might help if I mention to the benefits person that I'd like to see a new brokerage window get my assets.  Maybe there's still time for them to make that choice, since it seems like they haven't worked out all the details.  Earthling's link will probably help with that.

That said, I used the "free" ETFs available at my old brokerage window.
Title: Re: Employer is Changing 401k Administrator
Post by: dragoncar on March 17, 2015, 12:51:16 PM
As an update, they are transferring everything in kind to a new brokerage window