My money's in limbo..... Frustrated.

[rodi]

So my division was sold to another company about a month or two ago. This was deemed a "termination" event from the perspective of benefits - including 401(k). The 401(k) finally became eligible for rollover 2 weeks ago - and I contacted the servicer about a rollover.

They don't do wire or electronic transfers... They mail the check. And not to your IRA trustee - to you. They refuse to handle it any other way. This was confirmed by me and several of my coworkers.

So - last wednesday I pulled the trigger. My account went to zero, immediately. (Nice hit on my quicken networth!!!) It's now almost a week later and I don't have the check. I got a statement saying they'd sold my funds and mailed me a check - but no check.

My money is stuck - somewhere in the us postal system. I know it will eventually get to me - but this is a serious chunk of change and I'm feeling a bit frustrated.

Who would think that in 2013 they couldn't handle the technology of an electronic transfer from one brokerage to another. I'm not sure if it's the servicer (Aon Hewitt) or the fund folks (northern trust)... but it stinks.

 

[braumeister]

Or it could be that your statement was generated based on one office sending an authorization to another office to cut the check and mail it. Sad, but bureaucracies are like that.

As long as you get the check deposited within 60 days of the date you receive it, you should be fine.

 

[Texas Proud]

Or it could be that your statement was generated based on one office sending an authorization to another office to cut the check and mail it. Sad, but bureaucracies are like that.

As long as you get the check deposited within 60 days of the date you receive it, you should be fine.

I don't think it is when you receive it that matters.... but when it is cut...


IOW, the clock is ticking...

 

[retire2020]

We went through same thing with my wife's old 401K. It was sold immediately but when I called after a week they told me that it takes 10 days to mail out the check--crap. We received the check two weeks later.

 

[gauss]

60 days is from receipt

When should I roll over?
If the distribution from the qualified plan or IRA is paid to you, you have 60 days from the date of receipt to roll it over to another qualified plan or IRA. ..

ref: Retirement Topics - Rollovers of Retirement Plan Distributions

-gauss

 

[Texas Proud]

Also, be aware that when you deposit it, it might take a few days to get 'deposited'...

It was a long time ago, but I remember reading about someone who lost the 60 day rule because the bank (or whatever firm) kept the check on some ones desk for a few days.... it went past the 60 days before they completed the deposit.... the court ruled in the IRS's favor...

 

[LOL!]

No big deal. Relax. My spouse rolled over her 401(k) when her company was purchased. The check ended up on the front porch in an overnight letter. Since we always go in the back door, we didn't notice it for a few days.

Did you check your front porch?

As for depositing it, that was easy: Walked into broker's office and it showed up within 30 minutes online.

 

[scrabbler1]

Rodi, just wondering, was the check made out to your new IRA trustee or was it made out to you? If it is made out to the new trustee then you don't have to worry about as many tax consequences (only the time issue).

When I left my company in 2008, I had the non-company-stock money in a direct rollover to an IRA but had the company stock's proceeds along with some after-tax 401k money paid directly to me. The rollover money was in a check made out to the new IRA trustee (Fidelity) but mailed to me while the rest of the money was transferred electronically to my local bank's checking account.

I was a little nervous waiting for the check to arrive although I had it about a week after my last day of work which was also when I faxed these instructions to the old 401k administrator. The rest of the money showed up my local bank's checking account in about 3 business days after my last day of work. I met with a Fidelity rep the following week to deposit both sets of proceeds and get my ER going.

I do commend my old 401k adminstrator for handling all of my somewhat complex instructions correctly and in a timely manner.

 

[eytonxav]

No big deal. Relax. My spouse rolled over her 401(k) when her company was purchased. The check ended up on the front porch in an overnight letter. Since we always go in the back door, we didn't notice it for a few days.

Agree, I would think that a check like this would be sent via FedEx vs USPS. If you don't get it soon, I would tell them to resend and provide you with a tracking number.

 

[Amethyst]

+1. Don't wait to call them and bring it to their attention.

Amethyst

Agree, I would think that a check like this would be sent via FedEx vs USPS. If you don't get it soon, I would tell them to resend and provide you with a tracking number.

 

[perrytime]

I know how you feel, big firm Meryl Lynch, mailed my ihereted IRA check snail mail to Fidelity, after 2 weeks they mailed a second one, then both cleared in the Fidelity account a week apart. what an agrivation, they refused to sent it any other way. This was after weeks of other issues, I think ML just wanted to keep the $ in the account as long as they could.

 

[sheehs1]

They "float" that money as long as they possibly can. It doesn't come out of their account until you deposit and it clears all the while they are getting interest on it.

 

[FUEGO]

My old employer is paying out my ESOP right now. 20% of the value each year over five years. Unfortunately they value it as of December 31 and don't get around to cutting a check based on that 12/31 value until August of the following year. Kind of frustrating when we have a 15-20% run up in value between December and the following August when I reinvest it (at higher prices). I recall they will do a direct deposit to my Fidelity account, since that is where the old company's 401k was located. At least I don't have to wait on a check in the mail...

 

[Badger]

I know how you feel, big firm Meryl Lynch, mailed my ihereted IRA check snail mail to Fidelity, after 2 weeks they mailed a second one, then both cleared in the Fidelity account a week apart. what an agrivation, they refused to sent it any other way. This was after weeks of other issues, I think ML just wanted to keep the $ in the account as long as they could.

+1 I had similar experiences with ML over the years and each time mine lasted a few months. On occasion they even screwed the transactions in other ways even more. After multiple phone calls and many hours they would finally get resolved. Glad to be free of them. I know we are not the only ones with similar stories about ML.

Cheers!

 

[rodi]

A coworker put in his rollover request before I did - check took 10 days to reach his house. Snail mail. No overnight.

One of my bosses is transferring to Vanguard - they sent him fedex/overnight envelopes to GET the check (once he receives it). That's nice service.

I believe the check is made out to me and my buddy Charles Schwab - they needed the info about account number/etc to do the rollover.

We have a schwab brick/mortar office here in town - I'll deposit it personally... so there should be no issues about it sitting on someone's desk.

I'm not really worried about tax consequences... I'm frustrated that several hundred thousand are sitting out of the market, not making money for me. However - this could be to my advantage given yesterday and today (so far's) quotes. And I'm frustrated to have almost 1/4's of my investable assets somewhere in the USPS ether... I guess I'm a control freak when it comes to my money - and I have no control over this chunk of money.

My DH works from home - he's on high alert to call if the check arrives.

 

[HighRoller]

A similar thing happen to me with my IRA rollover when I retired last year. They (Mega Corp) would not send the check electronically to my bank even though the check was made out to my bank "For Benefit Of" me. (FBO). The only option they would allow was by US mail directly to me. It's a bit nerve wracking to know you have a 7 digit check floating around somewhere in the US mail. (Mail does get lost and who knows how long it would have taken to get a new check resent) However, I will say they told me 6 weeks in advance what day the check would arrive. I'm sure they didn't send it until a few days before it was due but it arrived on the exact day they said. (I was surprised) It was then up to me to get it to my bank.

 

[LOL!]

I'm frustrated that several hundred thousand are sitting out of the market, not making money for me.

Feeling better today about it?

 

[Animorph]

Gee, great. DW's 401k is with Hewitt. I'm sooo looking forward to this.

 

[rodi]

Feeling better today about it?

You made me look. Yeah - that makes me feel better about *this* money today. But the other 75% of my investable assets.... OUCH.

 

[Texas Proud]

You made me look. Yeah - that makes me feel better about *this* money today. But the other 75% of my investable assets.... OUCH.

Well, now you have to be hoping that they have already cut the check.... instead of waiting a week or so and then cutting it....

 

[rodi]

They sure as heck had better have cut the check... The account shows zero value., I got a statement saying they'd sold all my shares a week ago.

 

[gerntz]

You made me look. Yeah - that makes me feel better about *this* money today. But the other 75% of my investable assets.... OUCH.

So you've diversified into cash. Looking good at the moment.

 

[rodi]

day 8. Still waiting.
So's my boss if that matters. (He did the rollover the same day.) I think he's even more frustrated than me.

 

[Rustward]

I am kinda guessing this is not a Fortune 100 company.

 

[rodi]

I am kinda guessing this is not a Fortune 100 company.

You'd be wrong.

The company that I had the "termination event" with - when they sold my division was absolutely a household name and was wholly owned by a fortune 100 company which is so well known it's used as a verb.

Parent corp was fortune 55 for 2013.

Wholly owned subsidiary didn't make the fortune 500 in 2013 - but was 206 in 2012. (Probably because parent company was in process of slashing/selling off - in a very non-evil way. LOL)

We're the poor stepchild that no one wanted... sold off to an even smaller company that only dreams of being a fortune 500.

In defense of the parent company - they never ran our 401k... it was still being managed by the wholly owned subsidiary.