Answers in 401k Plans

Toni, many 401(k) plans still provide large investment menus that can be quite daunting for the average participant to negotiate. Your 401(k) provider maintains a participant website that you can log into, and review your account to explore your investment options. For most providers, you can simply click onto the fund you are interested in reviewing and it will bring up a fact sheet that can provide easy to read information about the fund. If this does not meet your needs, you can certainly use sites like www.morningstar.com. If you are really struggling to make an appropriate investment decision, you may want to explore using a target date fund. I would imagine your plan offers such options based on the size of the investment menu. If you require more customized investment advice, you can explore if your plan offers some sort of managed account service. However, there will be an additional cost for using such a service.

If you are still employed by the company that sponsors your 401(k) Plan you cannot take a distribution unless you are 59 1/2 for most plans. If you have left the company you can request a distribution by contacting your plan administrator/recordkeeper. I recommend calling them to explore your options, you should be able to find their phone number on you recent quarterly statement.

Edwin, when you default on a 401(k) loan from a 401(k) plan the money you still owe becomes a distribution event. In other words, you normally have a period of time after you have left the company to pay back the loan (usually 60 days). Your question states that you indeed defaulted and did not pay back the loan. You should have received a 1099 in 2003 for the amount owed on the loan and would have paid taxes and the 10% penalty for taking an early distribution. You will want to contact the employer that your $400K account is with do determine your current distribution options.

The answer is "most likely" because of your position and "maybe!" I've seen situations where the CFO is NOT responsible for the plan, but rather, a retirement committee of other leadership positions or the CEO and HR director were instead. A lot of the fiduciary tests relate to control. Here's a quick question as a starting point: can you make changes to the plan without having to ask anyone else's permission?

If not, check the other definitions in Allan's post, and here is the DOL's guide which also might assist! http://www.dol.gov/ebsa/publications/fiduciaryresponsibility.html Ultimately, run it by an ERISA attorney if you still aren't sure.

In these answers, there's talk of "outsourcing" such as using an RIA (advisory firm), bank, or insurance company under section 3(38) of ERISA to have discretion over the investments, but ultimately, it's still someone's duty to monitor that service provider that you outsourced to. You can share liability, but you can't fully get rid of it. Your ERISA attorney will have a lot to say in this area.

For educational purposes only. Not to be construed as legal or tax advice.

The easiest thing to do is contact the investment company that is handling the 401k plan. If you were a participant and had a balance at least at one time you would have received a statement. Simply call the investment company, ask for participant services for 401k plans. Tell them you formally worked for this company, they will ask for a social security number and then will likely be able to check the system to let you know if you have a current balance. They may also be able to update your address on file so you will start receiving quarterly statements or provide login credentials so you can monitor your account through the participant website. Good luck

You are in all likelihood a fiduciary. The term is quite often misunderstood as to what constitute a fiduciary. Generally if you are the CFO it is a treacherous path that you tread. Most certainly the trustee of the plan (usually the company owner) is held liable however whomever he depends upon for advice from person who is not a financial adviser, you become caught up in the DOL/IRS web of intrigue and let's see who we can blame for this issue of non-compliance. You can dodge this minefield by hiring a third party fiduciary (hopefully a good one) which will recommend investment choices, monitor those choices, review fees and expenses and have the deep pockets if they are wrong.

If you are part of a large corporation plan and it has as many choices as you indicate, there may also be an optional third party manager. Financial Engines is an example. They are a manager that will direct your investment allocations for an additional fee (typically I see .5% of your account balance).

If you are currently working with a fee based advisor and your employer plan is a significant portion of your overall net worth, they should be able to provide advice. Normally they will want to charge a fee for the service, but when you consider that most individuals accumulate the majority of their retirement savings inside their 401(k), it is often worth the additional cost. Ensuring your assets are properly invested to maximize the benefit of your employer plan can make a big difference in the long run.

It is easy! first, if you are in a 401(k) Plan that has participant directed accounts, your employer is obligated to give you your account information once per quarter. However, if your 401(k) Plan account monies are comingled with all other participants' account monies and are invested by the Trustee of the plan, then you may only get your account statement once per year. If you have not received such information you may go to your employer and ask for the information you want. In addition, if you are in a participant directed investment account, between the time you receive your quarterly statements, you can call or go to the recordkeepers website to find out what your account balance is invested in and what you account is worth.

To determine your 401K balance, allocation, and contribution history, you should first contact your Human Resources Department. They will most likely direct you to an online portal for your Plan Sponsor. If you have not accessed this information before, you may need to register for this access. Upon receiving a log-in and Password, you should be able to track your 401K information as often as you like.

To determine your 401K balance, allocation, and contribution history, you should first contact your Human Resources Department. They will most likely direct you to an online portal for your Plan Sponsor. If you have not accessed this information before, you may need to register for this access. Upon receiving a log-in and Password, you should be able to track your 401K information as often as you like.