- quote -

If there is a match, yes. If not, then its a way of hedging admin costs,
common among smaller companies.

This is one of the reasons why the retirement savings plans should be
removed from the control of companies -- and government -- and places
entirely in the control of the people earning money.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

Sis vis pacem para bellum!

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

- quote -

The new company had the option of continuing the old 401K, but
they decided not to. That is pretty typical when the new company
already has a 401K plan.

It is also common for 401K plans to have a waiting period before
you are able to invest. Given that, many companies waive that
requirement when they take over another company. The idea is that
the new employees are coming in with a certain level of seniority.

Making him wait a full year is kind of nasty. If it was 90 days
or 6 months, which are much more common, then he could have at
least put away something for the calendar year. Perhaps he could
go talk to the plan administrator and ask if they would be willing
to make an exception in this case.

I do like the idea of doing the roll-over of the old 401K into an
IRA. It is always good to control your own investments.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

For unexplained reasons, our software incorrectly returned this post
to the sender. Our apologies. Here is the complete post.

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Subject: 401K when company is sold
From: bigsky[at]nwi.net (Jane)

My husband has a 401K with a company he has worked for 2 years. He
was unable to contribute the first year, so he has only contributed
for one year. Now the company has sold and he will be working for the
new company. As he is understanding it, he will not be able to
participate in the new 401K for another year. Is this typical when a
company is bought out? He is in the process of rolling over his
present 401K to an IRA. Thanks. Jane


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-HW "Skip" Weldon
Columbia, SC