401K and Sale of Company

[jim_ling]

Within the last year, the company I work for which was a division of a very large company (Emerson Electric), was sold. I asked that my 401K/Profit sharing monies be transfered to an IRA, but the company insisted that this was not possible, the only choice was to transfer the assets to the new company's plan.

Is it true that my new company, under the "same desk" rules must treat me as if I separated from service since the company accounts for less than 85% of Emerson's assets?

Would it then also be true that the new company should have honored my request and allowed a lump-sum distribution be rolled into an IRA and not simply put the funds in the new program.

Can I go back to the company now and insist that the funds be rolled into my IRA?

I am in Kentucky.

 

[troynsam]

401K and sale of company

From my experience, I have found that most employees have more control over their retirement funds than do the employers. Usually you can bypass your company's HR and benefit's dept, and go straight to the financial company handling your 401K, e.g. Fidelity, etc...Many times they will roll it over for you with no fees attached. Check out www.401k.com