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 Well that was a giant pain in the balls

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Dave_In_Philly

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Age : 36
Location : Philly
Registration date : 2011-08-18

PostSubject: Well that was a giant pain in the balls   Mon Oct 22, 2012 4:22 pm

This past May I started the third job of what I consider to be my professional life. My first provided me with an IRA managed by a relatively small company. The second was for a 40,000+ employee Fortune 100 Corporation, that provided me with a self managed pension + 401k. When I left the first job for the second the transition was seamless, all I had to do was agree to pay the $50 account management fee and that was that. To this day I still have that account.

Saturday I got a letter from my second employer saying that if I didn't take a lump sum payment from my pension account by November 30, I would loose access to that money. So I just spent the better part of the work day furiously researching exactly what it means to roll over a retirement account. There is so much information (and conflicting information) that it really is an overwhelming process. Then, when I made my decision, the application process and funding process took another hour.

I hope not to have to do that again for a long time.

I finally decided on a Scott Trade account because it seems to have the most mutual fund options available and it has no maintenance fee. I also transferred by first IRA into the account so I don't have to pay that yearly fee anymore.
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Puff Daddy
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Age : 53
Location : South of heaven
Registration date : 2007-12-09

PostSubject: Re: Well that was a giant pain in the balls   Mon Oct 22, 2012 4:31 pm

Wow, that doesn't sound right, that they could just say "We're giving you a week to cashout or we're keeping it". Can they just suddenly get out of the pension like that? Well, at least they didn't just spend it and then tell you after the fact that you no longer have a pension.

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gravel

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Age : 43
Location : Oregon
Registration date : 2011-12-07

PostSubject: Re: Well that was a giant pain in the balls   Mon Oct 22, 2012 5:23 pm

It is in the company's best interest to have you move it, due to compliance notices and account maintenance, and its in your best interest to move it in order to have more control over the money.

That said, I think the company overreached.
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Kyle Weiss

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Location : Reno, NV
Registration date : 2011-09-18

PostSubject: Re: Well that was a giant pain in the balls   Mon Oct 22, 2012 7:04 pm

Yeah, not cool. Stinks to high hell, however, you could do two things.

Sue 'em, or move everything over to an IRA, either as a permanent move or a parking spot for the fiscal year. Then, if you ever decide to move it, you can re-contribute to the 401K provided the company allows outside contributions.

I have a collection of IRAs at this point, because of scenarios like this. Each tax year, you can contribute to one, and only one "retirement account," be it IRA or 401k. You can roll over anything you like, however, to my knowledge. I only contribute to one IRA (I have one at Scottrade) for 2013, and that's fine. The other two have miniscule amounts of money in it, and because the closing bank's fees (punishment for leaving) for rolling over to another location (thanks, Bank of Am-error-ca) I just let the sucker sit there. In 30 years it might be worth $10,000. Laughing Arseholes.

Anyway, consider just dumping it into a self-directed IRA until you figure it out. Do some research and make sure I'm not full of crap, either. Which is possible.

Cool
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Dave_In_Philly

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Age : 36
Location : Philly
Registration date : 2011-08-18

PostSubject: Re: Well that was a giant pain in the balls   Tue Oct 23, 2012 9:05 am

Yeah, apparently I was supposed to have been told about all this stuff (COBRA, HSA, 401k, Pension, etc) during an exit interview, but they never gave me one (a little politicking going on, but that's another story).

Technically they didn't do anything wrong because of the relatively small amount of the account and the length of time I had been with the company. So I did just what you suggested Kyle and dumped it all into an IRA. In the end it worked out better for me. Just wasted a day trying to figure it all out.
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Kyle Weiss

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Location : Reno, NV
Registration date : 2011-09-18

PostSubject: Re: Well that was a giant pain in the balls   Tue Oct 23, 2012 1:54 pm

Cool. At least you're back in control to a degree, and not at the end of a surprise knife. Sorry your job's being crappy to you... Neutral

Cool
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