It's finally happening. About 8 months after we launched the process, and about two months after we signed and sealed the official papers, this morning we will be holding the official employee meetings to announce the change of our 401(k) plan.
We are dumping our current plan with ING because of unsatisfactory returns, lack of transparency, high costs and a complete lack of index investing alternatives. Our new plan with ADP will offer very nice bells and whistles, including a wide range of index investment options, as well as highly rated actively managed funds (for those who insist on paying management fees without good reason); a ROTH 401(k) option and even a self managed 401(k) option for those employees that want more control of their financial futures. Even the good people at our finance department have something to grin about - ADP's 401(k) platform is integrated with their pay-roll management services, so there will be much less work for our accounting folks come pay-day.
For me, this day marks a personally satisfying milestone. I initiated the efforts to replace our 401(k) provider and led the search for a new provider, as well as most of the process to this point. So, if things don't work out as planned, my fellow employees are not going to like me very much. Of course, about $50K of my own money is in the plan, so I had a very strong financial incentive to make sure we got the best possible deal. I am just glad to see the train pull out of the station after such a long incubation period (I am also good at mixing metaphors, in case you haven't noticed).
6 comments:
Your new plan sounds very good. Much better than the plan for my company. Unfortunately, I have inquired about changing our plan, and there is no chance of that happening. I work for a large company with a lot of red tape, and there are a lot more important things for them right now. It's unfortunate.
When you work for a large company your ability to influence your company's plan is no doubt lower. However, my advice to you is to keep trying. At the very least, if your plan does not offer some basic options - such as a ROTH 401k or some broad, low cost indexes, ask for these to be added. Those will not require the company to completely change its plan.
If the 401(k) plan changes and looks worse than the one already in place do I have any options? Is it possible to roll over to IRA instead of take my balance into the new plan?
My employment with them continues.
Curious...how did it go with ADP 401k plan? I mean the process & the options available to invest.
Our co. is also with ADP...mykplan.com
Before plungin in, thought to check there performance & process.
Any info is appreciated.
Someone in Cincy.
Well...
This was 2.5 years ago, but the process was pretty smooth and we liked the service at the time.
I have since left the company and my new company uses Fidelity, which I personally like, in spite of some limited investment choices.
Ronen, ADP 401k services has a very nice pitch and it sound great. Is too good to be true. They have problems with their systems which will leave you with problems in compliance reporting. When you have a real problem and need to escalate it, watch out you will find there is no one. In addition, they do what ever they want to your account. You will find that things are not so rosey. But I do wish you luck.
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