Opt-Out Notice...Huh?

[Guest dhall]

Has anyone ever heard of an opt-out notice that requires a participant's signature, stating that such participant needed to "opt-out" if they didn't want to invest OUTSIDE of the plan?

[david rigby]

Could there be a typographical error in there somewhere?

P.S. Post the exact language?

[Guest dhall]

Has anyone ever heard of an opt-out notice that requires a participant's signature, stating that such participant needed to "opt-out" if they didn't want to invest OUTSIDE of the plan?

Nope. No typo's, that's what a broker told a client of ours. We'd never heard of it either, and we think he's off his rocker.

[GMK]

I'd ask the broker for the document or cite requiring the participants to agree not to invest outside the plan.

Is it something in the adoption agreement, maybe?

And the exact language, as Mr. Rigby suggested, could be helpful.

[WDIK]

Do the participants have the ability to choose between directing their investments themselves or having their accounts placed in pooled trustee-directed investments?

[K2retire]

What right does an employer or its retirement plan have to dictate what a participant does or does not do with his or her money outside of the plan?

[Mike Preston]

The broker is mishuga, nu?

[Kevin C]

Could "outside the plan" be referring to individual self directed brokerage accounts available as an investment option under the plan?

You will probably have to talk to the broker if you want to find out what he means.