AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

Dear Scott, 

My company is selling my Business Unit and they have advised us that our 401k balances will be automatically transferred to the new company.  We have no other option unless we want to cash out - apparently, our 401k balances are considered an asset which is being transferred as part of the sale.

I have read that, typically, you may leave your 401k with your old company or roIlover to an IRA - you don't have to move it to the new company.  I have a significant amount in my 401k and would prefer to leave it as is until the market turns around.  To rollover to another 401k at this time would mean selling at a loss.

Can you give me any information regarding the law and my rights in this regard?

Thank you so much.  I very much enjoy your columns.

TAB  

TAB,

Don't worry too much about the loss. As long as you replace the sold assets with a comparable asset mix, the only difference should be the inconvenience. Make a dramatic asset allocation change, however, and you could change future results, for better or for worse.

Scott