401k

What is the name of your state? MA

My employer sold the company in which I am employed to another company in the same line of work. I have a 401K plan with the former employer which is due to change to another plan with a different brokerage company as of January 1st, 2005.

Is there anything I can do to keep what I have in my present plan or must I convert all my holdings to the new plan ? I have not been told what the new plan offers however I don't believe the choices in the new plan will be as good as the new plan.

Thank you for your comments.

Is there anything I can do to keep what I have in my present plan or must I convert all my holdings to the new plan ? Chances are the prior 401(k) Plan will be completely discontinued as of the end of the year. Your former owner isn't going to have any interest in the administration and fiduciary liabilities associated with maintaining a 401(k) Plan for people who no longer work for him for a company he no longer owns. So yes, you're going to need to do something with the proceeds.

In the meantime, don't bite off troubles you don't yet have. (a) You don't yet know the particulars and investment options of the new plan, and (b) depending on how the acquisition was handled, it's possible you may be given an option to withdraw the proceeds and roll them into an IRA.

You just need to sit tight and see what options will be available to you when the reps from the new investment firm show up to do the dog and pony show. Frankly, the issue is entirely out of your hands.