Hi I am in the middle of acquisition of my business unit by another company and the new employer has not yet started the 401K plan. New employment letter, etc. have been provided. Do I have any rights to tell my my current employer that I don't want them to move/sell my 401K accumulations to the new employer and instead offer me the choice to move them to a rollover IRA Account. Is this a qualified event just like when there are terminations or the employees leaving. Will greatly appreciate any information you can share.
It depends on the terms of the merger/aquisition. The fact that the new company does not have a plan established does not seem to point to the fact that you will have a forced election. Most mergers give employees the option to 1) keep $ in the old plan, 2) roll to an IRA or 3) move $ to the new plan. Be on the lookout for a notification which will explaining your options.
