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    richardsa's Avatar
    richardsa Posts: 1, Reputation: 1
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    #1

    Jun 19, 2007, 04:36 AM
    401K Transfer to Different Company
    My company division was bought out by another company. They automatically transferred my 401K. I was vested with the old company, but the new company does not show the money vested. IS THIS LEGAL?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jun 19, 2007, 05:38 AM
    It may well depend on the terms of the 401K. First was the money not being held in a plan administered by some investment company?

    Or was this company holding the money in their own plan?

    But if you had a contact with the original company and it was vested, I believe they have to honor the terms of the original agreement, You need to get your 401 contract out and read it first then go talk to the department that handles this and question them.

    It is common when a company is bought out, to lose health insurance benefits, have pay cuts and other issues, but normally the 401 K investments are handled by outside firms and would have merely been transferred to the new company.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jun 19, 2007, 05:56 AM
    Can you provide more info here like how long you were with the other company, what were its vesting rules, what are the new company's vesting rules? How is this money shown in the new plan (as a rollover or as regular contributions)?

    Its possible you are just misreading the statements or a mistake was made. Have you talked with your benefits reps first?
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