May 401k, SCREW THE DRIVER AGAIN,

Discussion in 'May Trucking' started by platinum, May 28, 2014.

  1. platinum

    platinum Road Train Member

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    So upon doing some 401k updates on a few different accounts I was made aware without my knowledge or authorization that once you leave May and you invested less than 5k dollars they automatically take your money out and out it into a IRA. at less than 01% so if it was getting 6.34 for quarter or 14.48% annually you just got screwed!!! The company they use is called Standard, They also charged me 75 dollars to transfer without my approval or authorization. They said they sent 2 notification letters advising me, I did not get this mail, maybe because I never received it or never opened it. So here is what you can do, You can file a complaint with OCC.gov and this is a government agency that regulates idiots like The Standard. I am very disappointed that this should not happen and should be discussed to the employees at time of hire. Now I know how May keeps all this equipment brand new all the time. Your caught!!!:biggrin_25510:
     
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  3. windsmith

    windsmith Road Train Member

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    That's a pretty standard thing with any company for a 401(k). When I worked for IBM, they had the same policy regarding minimum balance. Be happy that they didn't just send you a check and charge you with a taxable distribution. It's your job to pay attention to your money, not the company's.

    As for May, they had no say in the matter. All they did was give you extra money by matching a percentage of your contributions. And they didn't profit at all from your money being transferred to a cash account. You should be mad at yourself for not reading your plan documentation. If you can't understand it, then pay an accountant to explain it in terms that you can understand.
     
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  4. back40

    back40 Light Load Member

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    wow imagine that a company wont let you stay with them after you leave. I think its 30-60 days and autorolls to ira. Stop your beeachin
     
  5. platinum

    platinum Road Train Member

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    Windsmith Thanks for your input, I believe they did take what they put in back. I was at 2,200 according to this letter sent to me, well the account is now less than 1500, which shows my contribution only with theirs showed 2,200. I only started the 401k after 1 year of service so only a few months, my previous construction employer still has me in the company 401k and even though they arent contributing I am still getting 12%.
     
  6. platinum

    platinum Road Train Member

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    You guys have more experience in this than me, thanks for input. I guess I am showing my age for inexperience at this part.
     
  7. Flatbedn

    Flatbedn Road Train Member

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    Companies take back what they put in unless you are there at the minimum time to become vested.
     
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  8. windsmith

    windsmith Road Train Member

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    This. My 401(k) with IBM had immediate vesting as did my local government 401(k). My current company has a 2 year vesting requirement. Companies do this as a means of employee retention. I can't blame them.
     
  9. Roadmedic

    Roadmedic Road Train Member

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    Many companies even have a 5 or 7 year vesting. You get a percent each year till you reach the full amount.

    This is done as a way of keeping the funds associated to the leaving employee where the money can then be shared amongst the rest of the pension funds. Not very unusual. IBM and the government may have been classed as defined benefit plans which operate under different vesting laws.
     
  10. platinum

    platinum Road Train Member

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    I understand that now, didnt before.
     
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