401K question

**ansley** · 07-16-2009, 11:54 AM

The co. I worked for 3yrs ago did their 401k match in co. stock. If I roll this into something else will it get rid of that co's stock? It is about 2/3rds of the total and that makes me very nervous.

Should I roll it into my current employers plan, they do not match, or should I put it in something else (what would you suggest)?

Mostly, I just want out of this stock. The co. is employee owned if that makes a difference. They did a big buy out of non employees but wouldn't let us sell. The # they gave us to call with questions about the changes was always busy. No one at our facility got through even though we were calling at all hrs of the day and night. They would not extend the days to call and HR told me he wasn't allowed to tell us anything. I said Enron (sp?).

TIA

**Greebo** · 07-16-2009, 12:15 PM

Originally Posted by ansley

The co. I worked for 3yrs ago did their 401k match in co. stock. If I roll this into something else will it get rid of that co's stock? It is about 2/3rds of the total and that makes me very nervous.

Yes, it will get rid of that co's stock.
Don't be too nervous, the entire market is down, so you'll be cashing it out just to turn it around and buy different shares that are also on sale.

Should I roll it into my current employers plan, they do not match, or should I put it in something else (what would you suggest)?

Probably get it into a good ROTH IRA which has a good selection of different mutual funds to choose from. I suggest you call a Dave Ramsey endorsed local provider: http://www.daveramsey.com/sa/mutualfunds/ They can give you some good options.

Mostly, I just want out of this stock. The co. is employee owned if that makes a difference.

It doesn't. single stock investing is risky no matter what - it's "all eggs in one basket" investing.

**ansley** · 07-16-2009, 01:38 PM

Thank you Greebo.

In the last 1/4 everything did really well except for this co. The other stuff didn't do well enough to even out but better than it has in a while. Even if I do get out of it, I hope it skyrockets for those still in it. I am just uncomfortable with over 60% of my retirement in one co.

**Greebo** · 07-16-2009, 01:45 PM

Originally Posted by ansley

Thank you Greebo.

In the last 1/4 everything did really well except for this co. The other stuff didn't do well enough to even out but better than it has in a while. Even if I do get out of it, I hope it skyrockets for those still in it. I am just uncomfortable with over 60% of my retirement in one co.

And so you should be. All it takes is one law suit and your 60% is worth $0.60...

**kita** · 07-16-2009, 03:01 PM

If you roll it into a ROTH IRA you will probably have to pay taxes on it. If you roll it into a regular IRA there will be no taxes. Roth has no taxes at the end, but you have to pay them at the beginning, and if this is a 401k then there were no taxes on it...

**Greebo** · 07-16-2009, 03:08 PM

Originally Posted by kita

If you roll it into a ROTH IRA you will probably have to pay taxes on it. If you roll it into a regular IRA there will be no taxes. Roth has no taxes at the end, but you have to pay them at the beginning, and if this is a 401k then there were no taxes on it...

Oh that's a good point. This is why you want to talk to a pro.

**MaryCarney** · 07-16-2009, 03:59 PM

If your ELP investment guy is as good as ours, you'll be mightily pleased. Another piece of Dave Advice that is golden is this - never invest in something you don't understand.

**pop goes the weasel** · 07-17-2009, 06:55 AM

The company I worked for had match 403 and stock. But they were indifferent funds ( same brokerage though) so If we cashed out the 401 it didnt' affect the stock but we couldn't do anything at all with the stock until we were serperated from the company.