Name: Brendan Osweiler
E-mail: brendan.osweiler@yahoo.com
Employed as: Friend or family of employee, for Less than 1 year
Posted: 24 February 2012
For all concerned:
Per federal law, employees over the age of 59 1/2 are allowed an
in-service distribution to another qualified plan tax-free and without
penalty. Once again, it was the CSX Capital Builder 401k plan that you
had with Fidelity and has moved to JP Morgan. I think it was shameful
that the the human resources did not bother to contact people and let
them know where the 401k is at. The process was as simple as setting
up an account at Morgan Stanley, we did a 3 way call with CSX employee
and JP Morgan, she said they'd send a check made payable to Morgan
Stanley Smith Barney (FBO For benefit of XYZ Client). I stayed on the
call because I don't let my clients get the run around.
You have a 401k which is a plan with a limited menu. You have to pick
an investment on the menu. With an IRA, there is no menu, you can have
your asset allocation customized to you. I cannot tell you whether CSX
allows for in-service withdrawls before 59 1/2 as some companies do,
i'm still trying to find out.
If you're tired of not having choices in your investment, there's
places to go. It was more than just moving his 401k to an IRA. He was
going to receive quarterly updates, regular advice on social security
and medicare issues, and much more value added features you don't get
in a 401k.
If any of you have any questions, feel free to reach me on my cell at
317-789-6664 as I went to see this employee on a Sunday. As a
financial advisor, it's no 8-5. I know you guys on the railroad are
always on call. The client showed me the computer which shows them
which turn you are in the cycle, it's pretty neat stuff. Take care
folks.....
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