Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
My money's in limbo..... Frustrated.
Old 06-04-2013, 02:58 PM   #1
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,817
My money's in limbo..... Frustrated.

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.
__________________

__________________
rodi is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-04-2013, 03:29 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,636
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.
__________________

__________________
braumeister is online now   Reply With Quote
Old 06-04-2013, 03:37 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,294
Quote:
Originally Posted by braumeister View Post
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...
__________________
Texas Proud is online now   Reply With Quote
Old 06-04-2013, 03:40 PM   #4
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
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.
__________________
retire2020 is offline   Reply With Quote
60 days is from receipt
Old 06-04-2013, 03:56 PM   #5
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 1,712
60 days is from receipt

Quote:
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
__________________
gauss is offline   Reply With Quote
Old 06-04-2013, 04:07 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,294
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...
__________________
Texas Proud is online now   Reply With Quote
Old 06-04-2013, 04:12 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
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.
__________________
LOL! is offline   Reply With Quote
Old 06-04-2013, 04:44 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,873
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.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 06-04-2013, 04:45 PM   #9
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
Quote:
Originally Posted by LOL! View Post
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.
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 06-04-2013, 05:17 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,900
+1. Don't wait to call them and bring it to their attention.

Amethyst

Quote:
Originally Posted by DFW_M5 View Post
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.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 06-04-2013, 06:31 PM   #11
Recycles dryer sheets
 
Join Date: Aug 2009
Location: palm bay , FL
Posts: 100
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.
__________________
perrytime is offline   Reply With Quote
Old 06-04-2013, 07:38 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Posts: 1,649
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.
__________________
sheehs1 is offline   Reply With Quote
Old 06-04-2013, 09:16 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,533
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...
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 06-05-2013, 06:28 AM   #14
Full time employment: Posting here.
Badger's Avatar
 
Join Date: Nov 2008
Posts: 829
Quote:
Originally Posted by perrytime View Post
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!
__________________
Badger is offline   Reply With Quote
Old 06-05-2013, 10:20 AM   #15
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,817
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.
__________________
rodi is online now   Reply With Quote
Old 06-05-2013, 10:28 AM   #16
gone traveling
 
Join Date: Jul 2007
Posts: 333
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.
__________________
HighRoller is offline   Reply With Quote
Old 06-05-2013, 02:50 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
Quote:
Originally Posted by rodi View Post
I'm frustrated that several hundred thousand are sitting out of the market, not making money for me.
Feeling better today about it?
__________________
LOL! is offline   Reply With Quote
Old 06-05-2013, 03:04 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,863
Gee, great. DW's 401k is with Hewitt. I'm sooo looking forward to this.
__________________
Animorph is offline   Reply With Quote
Old 06-05-2013, 03:14 PM   #19
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,817
Quote:
Originally Posted by LOL! View Post
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.
__________________
rodi is online now   Reply With Quote
Old 06-05-2013, 05:12 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,294
Quote:
Originally Posted by rodi View Post
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....
__________________

__________________
Texas Proud is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 11:08 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.