What Happens when Your Employer Changes 401k Providers?

If your employer changes 401k providers, there are several things that you must do. It makes sense to consider your current plan as well as what the new provider is offering, among many other details.

Don’t Think the Worst

Just because your employer is changing 401k providers does not mean that something bad is going to happen. There is a good chance that you will have new selections, some of which will suit you better.

Getting Ready for the Change

If you want to keep your investment the same, you may not have to do anything after the change takes place. For instance, if you were in an investment model with 50 percent stock and 50 percent bonds, you can expect the exact same thing with your new plan. Of course, there will be different options, in terms of what you can invest in, that you may have to consider.

Talk with Your Benefits Administrator

A 401k provider change is nothing to take lightly. This is your retirement fund, and you must make sure that you fully understand the change and what it means to you. Your benefits administrator should be able to answer any questions.

If your employer changes 401k providers, it is not the end of the world. Yet there are some things you may have to do to ensure that your investment model is to your liking. 

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