My employer wants to transfer from their 401K company to another 401K company. Can this be done just as if it were an indiviual transfer. What is the process? Arethered any fees or signatures needed? Can they just transfer their employees account to another company and notify us? What are the legal steps? Thank you for all your help.

This happens all the time - it is not at all unusual. What's happening is your employer is contracting with a different administrator to manage the program. The process should be automatic - from your perspective. That is, you don't need to do anything. However, in many cases your choices for investments will change, which means you may need to fill out a form identifying which investments you want, for both existing balances and new contributions. One thing to be careful of - there will probably be a "blackout period" while the records are being transferred from the old administrator to the new, during which you won't be allowed to make changes. You should carefully review your positions prior to that to make sure that you are comfortable with being "stuck" during the transition period.

Dear Ebaines. Thanks for your response. That's good info. But is it cost effectivefor my company to do that? Can they just break contract with the "old" 401K company and start anew with a different company? Are there any rules for this?

Companies change admins for a variety of reaons. Mostly its because the new admin will offer more investment choices for the participants of the plan. Often it may be because a new admin charges lower fees for their services.

ANYTHING done with a 401K plan is subject to ERISA regs.

I'm wondering what your concern is here?

Thanks Scott :) My reason for wanting to know is to make sure what they do with my money is accurate and does not bring me any heartache in the end. In these times it's good to ask question and seek answers to protect yourself. Thank you.

As EB said, if the transfer means a change in investment vehicles, they are required to advise you of what vehicles are the equivalent of what you have now. If they offer a Small Cap Growth fund now, then the new admin will need to offer such a fund, or they will have to give you a choice as to what new vehicles to transfer you money into.

Whatever the value of your account at the time of the change will be transferred to the new vehicles. You will get a statement showing this transfer.

Thanks ScottGem and Ebaines! :)