Can a 401plan be reinvested without being terminated from a company?

Question

There is reason to believe that my mother-in-laws 401 is being mismanaged, if there at all.
The company is verging on bankruptcy and she wants to reinvest in CDs or another 401 plan since her lifes sanings is invested in the company.
They will not allow her to withdraw any funds unless she resigns or is terminated.
She is too intimidated to continue asking like she has been for a few months.
Please help as soon as possible.
Thank You

Answer 1

My suggestion is to speak with a 3rd party investment professional or something like e*trade, to find out if they can take over your mom-in-law's 401k.

That's who you need to ask, not the current managers of the funds. It's not really in your current firm's best interest to tell you everything. Another firm has an interest in having your 401k. Therefore, if there's a way to do it, someone will help you with doing so.

Answer 2

It depends on the rules of the company plan, but usually not other than withdrawals for hardship reasons. There are usually several investment options, often one being company stock - as someone else said, it's not a good idea to have large portions of your 401K tied up in stock of one company.

If she leaves the company, she may roll over the 401K into an IRA - there are almost limitless options there.

Many companies have their 401K plans managed by an outside agency - often a large mutual fund family. If hers is being managed in-house, I'd probably ask some questions - doesn't mean there's something shady going on, but could be.

Good luck.

Answer 3

Find out what the 401k investment options are. Move it out of the company stock into the mutual fund that they may have available.

Answer 4

She can roll it over to a standard IRA, thereby avoiding penalties and taxes.

Answer 5

Yes it can, a co worker of mine did that.