Monday, April 16, 2007

good thing I didn't move it yet


I have not yet moved my 401K money and it's good that I didn't. I just received a letter from the VZ saving plan about a "discretionary match" that was placed in my account on March 26, 07. I happened to check the account early this month and noticed a matching fund amount listed for the first quarter. I was puzzled about any matching this late. Until I opened this letter, I thought maybe it had something to do with the bonus payment. Well the letter explains it had to do with contributions between July and Dec. 2006.

Now I am wondering what happened to people that already moved their 401K accounts. Do they still get something? I would imagine it would be very difficult to give them the money.

Well, please comment if you xfoners have anything to share about it.

Oh the number for the plan's center is 888-457-9333

7 comments:

Lab Rat said...

I got the notice, although I found it to be pretty incomprehensible in the details. I didn't actually check my account until you mentioned it and was pleased to find an unexpected contribution in March. I, too, left my 401k account alone. It seems to have had some pretty good gains in the last two quarters, and I'm not sure I could do much better if I reinvested it elsewhere. But then, rats are really bad investors (but outstanding hoarders), so I'm probably wrong about that. I also left my pension in place, which I don't think too many others have done. If I understand it correctly, I'll need to make a decision by August or it will be there for good. Again, I'm not sure I could do better than the the projected benefit, and again I could be wrong. I also would have to bet that no further negative changes will be made. The only one I can imagine is that the company abandons it altogether and lets the government pick it up - which could result in lower benefits. I think they would have to be in real financial trouble, but I suppose that could happen at some point.

It's funny how we keep getting these occasional windfalls of money based on our past service. [Company], the gift that keeps on giving.

Eryn said...

I moved my account to Vanguard. So I guess that means that I won't be getting any extra cash.

lisleman said...

thanks for sharing - of course there is a difference between the 401K and the pension. As I mentioned I moved the pension (rollover) because that money is more in the control of the company. The 401K money is mostly money you contributed and the matching part is yours once it's vested over to you. My thinking tells me that the 401K money is much safer than pension money. Less subject to any big company problems. Speaking of pension problems think Enron, United Airlines and others.

Since I started the pension rollover process soon after I left, I didn't notice any time limit. I do know that the process is VERY slow. Plan on 3 months.

wkellyo said...

I moved my 401k money back in September or October--but another xfoner called me this week telling me about the contribution, and there was a few bucks in my old account.

lisleman said...

that's interesting so they put money in old accounts that had already been rolled over. Maybe it's standard policy to keep this accounts open for sometime even if you empty them.

So eryn, if you are still reading - you should check your old account.

wkellyo - are you going to roll that small amount over then?

One former 401K plan of mine kept the account open with 1 or 2 pennies in it. I thought it was silly because I would get statements showing the balance of $0.02 knowing the envelope and postage was much more.

wkellyo said...

Lisleman,

I am not sure if I am going to roll Mr. Franklin over or not. Given that I am now spending less to live in Chicago as I was in the 'burbs, I am considering just keeping the account open and throwing the difference into the Fidelity account.

dzahalka said...

I don't recall getting a notice, but did see a very nice bump in the 401k account. Good things come to those who wait, I guess. My friend, a financial advisor, has helped me keep the investments balanced. By doing that, it produced a 16% total yield for the year 2006. Don't believe the Fidelity rate of return, because it was miscalculated.

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