403b. So new, she tells me she's not vested yet. The total is under $1,000.00 still. Her quarterly statement--- the very first one, ever--- came yesterday. It shows -.33 admin fee taken...OK.
This stupid--- as I mentioned before--- 403b is wrapped in an annuity. The statement is EIGHTEEN PAGES. More than half of it is red-tape bullshit legalese. The next-to-last page spells out that there will be more money taken from the account if the account holds funds from more than one investment provider (fund house?) in order to create an aggregate form 5500 for the IRS. That fee will be $500.00.
*But in this 403b, there is only one, single fund (NAESX) so that additional fee doesn't apply.
....Mysteriously, under "Individual Expenses," on the very last page it shows:
ACTIVITY TYPE: Return of Excess Administration $40.00
ACTIVITY TYPE: Special Mailing $20.00
The plan's return of Excess Fee will be paid by the Plan Sponsor. (The hospital where she works???? The plan Administrator, I'm figuring, is Mass Mutual.) The change will take effect on Sept. 1st, 2014 and will apply prospectively only.
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Anyone care to TRANSLATE this crap? I think I almost get it. But "almost" works only if you're playing at horseshoes. Thanks.
Comments
Derf
If you do a three way call, with your wife on the line, then they'll probably talk with you, with her giving them the permission to do so.
Max out your IRA's in the meantime.
Well said, Maurice. Crash, do your best to help her understand that it's up to you two to take care of yourselves when you are older, and that it's critically important that you start right now. Above all, avoid all possible debt!
Do you think my better half even knows what's in her 401k? I wonder if she knows she has one. I think I explained to her what it is once, but I'm sure she thinks its only something other people worry about.
On another note, I was in situation like this once where crooked 401k manager provided only VIP products in 401k. I was working for a small company with 20 people then. I held a meeting explained what was happening and we moved the account to Vanguard. I don't work for that company anymore, but some people now think I'm a genius. I just tell them I'm not crooked.
Some things in life are stupid. We just have to accept and bypass them. The situation poster is describing is getting worse because things are getting lost in translation. JMHO.
I am indeed able to log into an account page to see what's there. But of course, there's nothing there regarding my questions, above. Once, wifey said she's vested. Yesterday, she said she wasn't. Ugh. I must go look at that MassMutual account page again. The stuff I quoted directly from the quarterly statement is outrageously complicated, stupid and indecipherable. Words and numbers. Only an annuity geek could possibly understand it. Crazy. Thanks, everyone.
In fact I started with a new employer this year where they match up to 3%, but I must work for them (vested) for 5 years to make 100% of their contributed money. Actually the rules around mine are that I would receive 20% of the matching contribution for every year I work there. This really is no different than 'old-time pension plans'. You always had to work a certain amount of years to be vested in a retirement plan.
By the way, money that your wife contributes to the plan will always be hers no matter when she leaves that employer.
Utterly shameless in my opinion, but when everyone starts doing it and there can't really be a law against it, one can't do much. My point is unless employees read the fine print they don't even know this is happening until few months after they resign and see company match does not get posted in their account, or when they rollover and find they have less than they did. I am not even clear if simply shares are held back or cash itself does not get invested until end of year. Yet another variable in the sad equation
"Total Balance" $962.18
NAESX +3.97% ytd. (I'll check to see if that jives with the mainstream performance numbers on other websites.) And 17.564 shares owned.
$948.47 was contributed by employer. The TOTAL VESTED BALANCE = $0.00.
Yup.
Click a different link, and it is explained this way:
Vesting
How does vesting (ownership) apply to my account?
Plans set a "vesting schedule" to determine what percentage of ownership you can apply to your account at specific points in time. You are always 100% vested in any Salary Deferral, Transferred EE Pre Tax contributions, plus earnings. Your plan's vesting schedule applies to the following contributions, plus earnings:
Employer Contribution
Vested Percent By Year:
0......... 3
0%...... 100%
___________________________
So, it looks like there is no partial vesting. You're vested only after you've been there for 3 full years. No partial amounts available if you do not stay employed for at least three years.
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A further, final note from the website:
"Your years of service for vesting purposes begin on your date of hire.
If you die, become disabled or reach normal retirement age, you will become 100% vested in all contributions your company makes to the plan, plus earnings."
.....So, all of this back and forth and sincere efforts to help have been for nothing, after all. You guys deserve at least a cold beer! Thanks a ton. Wifey will start her new, different gig on 01 Sept.
Regards,
Ted