My company is starting a 401k plan.

[Guest Blowout]

My company is starting a 401k plan. We currently have a Profit Sharing Plan, and that money is all going into that plan, I don't want to do that, our 401k Plan is a Lord, Abbett Mutual Fund. and I want to gradually put that money into the plan on a per month basis not in one lump sum. What if the stock market is not doing well, then the initial investment is going to be less that what it started out to be. Do I have that right to ask for my money from the Profit Sharing Plan? I am 100% vested in that plan, since they are closing it out. I don't think my company has that right to do that without my okay.

[Guest]

generally the only way you can get money out of a plan is to have a distributable event...e.g. you terminate, die, become disabled or retire.

since it is a profit sharing plan, there might be an option for an 'in-service' withdrawal. However, you would be hit with a 10% early withdrawal penalty by the IRS, so you might as well take your chances with the stock market.

For all practical purposes, when money is moved from one place to another, your beg bal = your prior ending balance. so if stock market changes, any gain/loss is not due to the switch, but simply change in investments. But how do you know you are going to be worse off in the new funds than in the old funds? No one knows, it does simply depend on how the market performs.

now, all that being aid, some funds require investments to be at the investment house for a certain period of time. sort of like a CD - 'penaalties' for early withdrawals. But again, that has nothing to do with the stock market - it is simply the investment house fee.

can your company change plans, etc. Sure! They are paying the administration costs - gosh, they don't even have to offer a plan, its not required by law. be thankful they at least offer a plan!