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Thursday May 01, 2008

Nasty "gotcha" in Kimley-Horn 401(k)

When we got Kimley-Horn's 401(k) prospectus, we scanned it...and tossed it. Now that we have been terminated we find a very very nasty provision in it. Even if you are 100% vested you can only pull the first $50k that kimley has contributed for a period of 5 years. This is true even if you are have less than 5 years to retirement. Given the somewhat limited aspects of Kimley's 401k choices, this can be a very hazardous provision.

When the T Rowe Price Rollover consultant was contacted and this provision surfaced, he was quite suprised and said that of all the plans he is responsible for kimley's was the only one with this provision.

We could possibly understand this if the you were allowed to buy Kimley stock in the 401(k) because it in the case of a mass firing as has been occuring, it could severly depress the stock if everybody bailed out by rolling over their 401(k). There doesn't seem to be any other reason.

 
It would be interesting to find out if this also applies to an inherited 401(k).....in other words if you die are your beneficiaries going to be hamstrung by this provision?

 

While we are on this subject.....Kimley let us have some choices in the 401(k) that cover periods like this with the dollar falling drastically. Specifically how about a mutual fund that specializes in commodities. And on the fixed income/stable value side how about an option to invest in TIPS. I remember only too well what happened to the dollar when it was devalued; I really don't want to see my money disappearing day by day even if the numbers shown on the screen claim it is appreciating.


Posted at 10:32AM May 01, 2008 by mis'tree in General  |  Comments[2]

Comments:

Another IMPORTANT thing to remember about the rollover process. **You can not do anything about rolling over your 401K until Kimley HR sends the paperwork to you!!** Then you have to fill it out and send it along to whatever other provider you have chosen for your new account. YOU MUST PRESS HR TO BE EXPEDITIOUS!!! Call them, e-mail them, generally harass them until they respond. This is YOUR MONEY. They have an obligation to make it possible for you to get it in your hands as quickly as possible.

Posted by t1gger on May 07, 2008 at 08:58 AM EDT #

This sounds liek a lot of latin and greek to me, I am really not familiar with the terms and jargons, I am glad I dont work there anymore, I belive their 401 K is almost non existant for a new hire.

Posted by HJ on May 21, 2008 at 08:36 PM EDT #

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