The email from HR says the record keepers for 401k will be changing in December, and you will not have access to your account or be able to perform transactions from Dec. 22 through week of Jan. 10, 2021.
Layoffs and then we cannot access 401k for a couple of weeks. Something feels very wrong!
16 replies (most recent on top)
The only 401k funds you should invest in are the nasdaq and Snp index funds low fees and at least you match the market. If you look at the comparison of those 2 index vs the others Wells Offers. They are up over 40% YTD.
"Wells Fargo in -house Target date funds have substantially higher fees than the fees charged by comparable target date funds, and consistently underperform them. These fees generate substantial revenue for Wells Fargo"
So make your own target date fund using indexes. That's what I do.
Suspicion is the result of general mistrust of Charlie and upper management. I don’t trust him either. He has done nothing to show good intentions towards employees.
Wells Fargo in -house Target date funds have substantially higher fees than the fees charged by comparable target date funds, and consistently underperform them. These fees generate substantial revenue for Wells Fargo.
Index funds are cheaper to operate in general.
"The timing is suspect'
This stuff always happens at year end. Stop being a tool!
"Nothing low about the fees in our 401K, FYI."
BS, The index funds are very cheap.
"the timing is suspect" - not really. It's very common for plans to transfer at year end, for reporting, tax, etc. reasons.
This is very normal when administrators are changing. There's always a blackout period.
In any case, my only concern with this change is how fees will be impacted. Some say they aren't low. While that may be true for some actively managed funds, the index funds absolutely do have very low fees and I take full advantage of them.
It’s called a blackout period. Standard procedure when you move from 1 vendor to another. Can’t be changing investments when the plan is transferring. Causes big accounting problems., shares out of balance, etc. Has nothing to do with the layoffs at all.
The timing is suspect
WF doesn't want people selling off company match. It's obvious.
Are they moving it to JP Morgan???
Nothing low about the fees in our 401K, FYI.
Nothing to complain about here.
Routine business when a 401k provider is changed out. As long as my fees stay low I don't car if I need to go to a new website.
That’s interesting. I didn’t get that e-mail yet. I wonder if that is a cost-savings measure?
I'm annoyed I can't dump the WFC match right away on the 2nd, but other than that not really worried about it. I'm also guessing we won't be able to see the 401k on wellsfargo.com anymore, which is another annoyance.
Nothing nefarious at work here.
Think about it this way, you're moving the database behind billions of dollars in assets under management from one record-keeping provider and system combination to another record-keeping provider and system combination.
It's a system that routinely handles millions of transactions a day and they want a 3-week window to move the data, QA the data in the new system, and be running in production.
Do you think that's unreasonable? Personally, I'm reassured that they're trying to protect my retirement. Besides, it's a 401(k). 3 weeks shouldn't be able to make or break it.