TRP is changing 401K

[Allegany]

TRP is changing their target retirement funds such as 2010, 2020 and so forth to retirement trusts with the same target retirement years. Anyone else heard of this? Supposedly the retirement trust will have a lower expense ratio from .63 to .45. That's good news but I'm wondering if I should get out or stay. The change over is automatic after June 17.

 

[Dude]

This is news to me, where did you hear of this? I wonder if this is just specific to your 401k? I recently transferred part of our Roth IRAs to TRP into the 2035 fund. A lower ER would be great assuming the underlying investments don't change.

 

[Animorph]

Given the thread title contains "401k", I agree with Dude. This is most likely only a change within your 401k and apparently gives you a lower expense ratio. That should be a good thing, but double check the ER's. Most 401k's I had with trusts seemed to do that in order to charge extra fees.

 

[Allegany]

I don't know if it is specific to my 401k or not the notice came from TRP.