Company has no access to or use of your IRA funds.+, I tguessing in a Roth the company loses a lot of control in what they can do with those funds. von.
Company has no access to or use of your IRA funds.+, I tguessing in a Roth the company loses a lot of control in what they can do with those funds. von.
First, you can do both a 401k and an IRA (neither is dependent on the other, other than a pretax 401k could put you in a position to qualify, tax bracket wise, for a pretax IRA). Second, it doesn't matter about control by the company, since that money is yours contributed (401k) and the company can't touch it. What does matter is that a 401k plan needs to be written up as a legal document by the company which needs to adhere to federal guidelines (federal guidelines has the rule that you can't rollover those funds from a 401k to an IRA till 59 1/2 or termination/retirement). I'm thinking this is why Estes doesn't want to make changes because they don't want to have to change the legal language of their plan. There may be a further expense by the Trustee to Estes for other options such as Roth or after tax options??? As far as IRA, well that has nothing to do with the company.+, I tguessing in a Roth the company loses a lot of control in what they can do with those funds. von.
Nope. The only control the company has over the funds is how much they contribute. The plan is administered by a third party and the company has no control over how it’s invested or what’s done with the money. Any company contributions are non-Roth. No reason to not offer it. Doesn’t even cost extra to have.+, I tguessing in a Roth the company loses a lot of control in what they can do with those funds. von.
Good questionIf the Roth is a better type of 401k, then why doesn't the company offer the Roth? von.
I emailed them before about this (right after the announcement of the fidelity move) and got no response. I will email again.Now that we are with Fidelity for our 401k, I made a formal request to our Benefits department to expand our 401K to allow for Roth and After Tax contributions. Got a reply from Vice President Compliance, Benefits and Spend Management that they would look into it with Fidelity. Make your case to [email protected]. The more employees interested, the more likely Estes will pay the expense to Fidelity to expand our 401K abilities.
It may have helped that I also added a second recipient, [email protected]I emailed them before about this (right after the announcement of the fidelity move) and got no response. I will email again.