Maybe going about this the wrong way...

[Sugaree5335]

So, for starters I have a basic EF and am working on getting all my debt paid off. I also have a great retirement program through my job that I max out contributions to.

Now for the question. I have a small mutual fund through Transamerica that was associated with the retirement plan from a former job. I have considered rolling it over into my current retirement plan, however this is where it gets complicated. The plan administrator at my former job is my former brother-in-law. For reasons that I don't really want to get into I don't want him to know that I'm making a a move with this fund. I have switched all statements and confirmations to email so he won't have access to those any longer, but rolling over the fund will require his signature(yet another reason why working for family isn't always a good idea).

What it seems I can do without him knowing or approving is switch from the stable growth fund to a more aggressive biotech fund. The stable growth option was great for everyone at the business except me. All of my coworkers were within 10-15 years of retirement and it was never explained that I could change the option (and I didn't investigate). Anyway, it's not a huge amount of money on the line and I have plenty of time (~30 years) until retirement so I can afford to take this risk.

Just wanted to stop in and get advice. Am I going about this the right way? How would you do it? Thanks in advance.

[robertgpitts]

Hi Sugaree,

I think you should consider opening your own, independent Traditional IRA or Roth IRA with one of the major mutual fund houses, preferably Vanguard. Use the proceeds from the old Transamerica account to fund it. That way, you avoid the ex-brother-in-law and at the same time establish a place where you can transfer retirement plan funds as you move from employer to employer. You may also have more choices regarding your investments.

Robert Pitts
Freedom Personal Finance
Lakeland, FL

[Sugaree5335]

Hi Sugaree,

I think you should consider opening your own, independent Traditional IRA or Roth IRA with one of the major mutual fund houses, preferably Vanguard. Use the proceeds from the old Transamerica account to fund it. That way, you avoid the ex-brother-in-law and at the same time establish a place where you can transfer retirement plan funds as you move from employer to employer. You may also have more choices regarding your investments.

Robert Pitts
Freedom Personal Finance
Lakeland, FL

That's what my original plan was. I even looked at Vanguard. But doesn't that also require a signature from the plan administrator to transfer the funds? This seems to be a requirement from Transamerica to release the funds. Do you know of any way around that?

[debtelim]

I agree with @Robert and would recommend moving to Vanguard or someone like Fidelity.

Honestly I would bite the bullet and get him to sign this even if it makes you a bit uncomfortable. Having someone that you don't trust have any power over your money or a financial account just isn't a good idea. To me sounds like you could have some short-term pain for more long-term gain!

Hope this helps!

[Sugaree5335]

I agree with @Robert and would recommend moving to Vanguard or someone like Fidelity.

Honestly I would bite the bullet and get him to sign this even if it makes you a bit uncomfortable. Having someone that you don't trust have any power over your money or a financial account just isn't a good idea. To me sounds like you could have some short-term pain for more long-term gain!

Hope this helps!

Thanks for the advice.

[disneysteve]

I would not base my investment decisions on where a family member happens to work. Put your money where you have the most control and where the investment best fits your needs. If he doesn't understand that, he isn't a very good plan administrator. Besides, he isn't even still your BIL as you said "former" so what difference does it make?

[robertgpitts]

That's what my original plan was. I even looked at Vanguard. But doesn't that also require a signature from the plan administrator to transfer the funds? This seems to be a requirement from Transamerica to release the funds. Do you know of any way around that?

If the ex-BIL is really the plan admin (and not a third-party employee leasing firm like Staff Leasing or Paychex), then it sounds like you'll have to work with him. Once everything is set up with your mutual fund company of choice, perhaps you can take a friend with you to meet with the ex-BIL in person and take care of everything in one shot.

If the company, however, is using an employee leasing/benefits firm, you can deal directly with them.

For what it's worth.

Robert Pitts
Freedom Personal Finance
Lakeland, FL

[kork13]

I don't know all the details involved, but if you work a transfer to an IRA through Vanguard or whoever, they will take care of everything and you shouldn't have to approach the guy at all. Let the investment company deal with him if necessary, and if he does happen to discover that you've transferred your funds, so be it. There's nothing he can do about it, and you have legal protections if for some reason he starts to harass you about it.

[Sugaree5335]

Besides, he isn't even still your BIL as you said "former" so what difference does it make?

Basically the situation is this. My ex is still bitter and angry that I left and is also having financial difficulties. Retirement accounts were never addressed in the original divorce agreement. If he finds out that I'm making a move with this fund I'm afraid that he's going to cause trouble. I'm pretty sure he's already cashed out his 401k and I don't want him trying to come after this money and reopen the case based on this issue. I don't think he would win it based on the laws of my state, but he could cost me money if I have to hire an attorney to handle it.

[Petunia 100]

Your ex would need a QDRO to get at your retirement assets. The judge who heard your case would have to sign the QDRO. If your divorce is final, it is too late.

[jpg7n16]

I would call Fidelity or Vanguard, and tell them that you've got some money you'd like to move over from a previous employer.

Either company would gladly help you move it over, and would deal with your ex-BIL for you.


Besides, wouldn't your ex-BIL already know that you had the retirement assets there? Or is he somehow unaware that he's the plan administrator for his brothers ex-wife??

He probably knows about the funds, and if he didn't bring it up before, no reason to think he would now.

Plus, see Petunia's post.