I have an existing 401k with an old employer that I want to roll into my current 401. It's roughly $45000. $12000 of it was employer match which is company stock. The company has just been sold, they are tell me I cannot take my employer match (btw I'm 100% vested...it's mine) because of something to do with the IRS. Because of the company sale?? They said it could take 18 to 24 months to get that portion. But as of now I have to do something with the other portion because the company has been sold.

Does this make sense?  How should I go about this? I know right before the company being sold my company stock dropped 4000 bucks. Not sure what to make of all this.

Any input would be appreciated.

JD

There is what is known as a "corporate action" occurring with your company stock so yes, it will be "locked up" until they finish doing whatever they are going to do with it.

You may end up with shares in the new company or $.

Example:  I held shares of WNR which was acquired by TSO; the tender offer was for $ (the better deal), an exchange of shares or a combination of both.  I requested the $ and am now waiting for the process to conclude.  As of now, the (value of my) WNR shares don't even show in my brokerage account.  Eventually, $ or $+some TSO will show up.

When you say old 401(k) into existing 401(k), do you mean a 401(k) from a previous employer which you wish to roll over to the current (sold company) employer or ?

If you're talking about rolling your $ away from your current (sold company) employer that may be possible since you technically no longer work for said company (once sold).  Otherwise, you can't touch a 401(k) until you are no longer employed by the employer through which you are contributing.

With all of the (possible) turmoil, I would stand pat, at least for now.

Unless your current 401k has REALLY good funds (like Vanguard institutional shares) I'm generally not a fan of rolling funds into employer plans.  Roll over into a traditional IRA instead, much more flexibility.

I rolled what I could this morning. I did pick vanguard index admiral fund or something like that for some of it. I know nothing about investing. My 3 month rate of return on the 401k I rolled into has been right around 6%. Does that suck or is that decent?

I did think about my own IRA. But I figured this was easier to keep track of. Flame away.

Also the issue I originally posted about is a legitimate thing when a company is sold. According to an investment guy I talked to today.

Thanks for the info guys.

You'll do fine with the Vanguard S&P500 index; Admiral shares have the lowest expense ratio.

You did fine. Keep saving $$$.

I wanted to mention that I also have some of my 401k in what's called RMS. Risk management strategy...I think.

I have like 12k in what's called moderate and like 8k in growth. I'll have to double check. Is this a decent move or should I try and stick with all vanguard index stuff.

I'll try and get my account info and screen shot some stuff if anyone is willing to look.  Advice on the internet isn't always the best.....just helps to get some other input sometimes.

Thanks guys

JD

This

Too late. Already rolled it.

I have some money in savings that's not doing shit. Maybe I'll start a Roth IRA with that.