Your Company Just Merged: What Should You Do With Your Old 401k?

  • 📰 Forbes
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 53%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Which benefits from your old plan are protected and which might you lose?

“If it is an acquisition, the acquirer typically maintains their plan while the recently purchased company has their plan merged; thus, forming one plan,” says Daniel Maupin, Financial Planner at Rather & Kittrell Capital Management in Knoxville, Tennessee. “Many times, the employees of smaller companies benefit from now having the leverage of many more employees when paying for company benefits including the potential for lower costs within the retirement plan.

“The options available are partly determined by the type of sale—stock or asset,” says Baker. “In a stock sale, the buyer is acquiring ownership of the company from the seller. Ownership of the seller’s company includes everything that belongs to the company, including any active retirement plans. In an asset sale, the buyer is only purchasing certain assets of the seller, like client lists, physical and/or intellectual property, equipment and so on.

“Under no circumstances can active employees roll their balance out of the plan unless the remaining plan allows in-service distributions and the participant has met the in-service requirements,” says Brian Heckert, Founder & Wealth Manager at FSM Wealth in Nashville, Illinois.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Dumb headline by Forbes. Once again gohabsgo

Forbes must be seeing too much M&a Downtown 😆😆😆 Fuxkin Forbes. SteveForbesCEO 🇺🇸

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines