Ask Terry Questions 401 k rollover ripoff

401 k rollover ripoff

By Terry Savage on August 11, 2018 | Financial Planning / Retirement

In January, I retired from Walmart. I transferred my 401K from Merrill Lynch to Vanguard. The time frame of the transfer couldn’t have been worse. The 30 days ended over a weekend, February 4. On Friday, February 2, the market was DOWN and I lost $5, 246.42. I had figured that was it, but on Monday, February 5, I lost an additional $7,633.13, totaling $12,879.65. February 6 I called Merrill Lynch and was told Walmart has an agreement with the government that, if the 30 days end on a weekend .. the Monday is the ending date. I have called Merrill Lynch again and Walmart, but have gotten nowhere. I talked to a representative at Vanguard and was told that, at Vanguard, it would have closed on the weekend and Monday would have not been the closing date. I would appreciate your expertise in my attempt to recoup the $7,633.13. I am wondering if Merrill Lynch is authorized to have different rules about an issue such as mine? THANK YOU VERY MUCH ! CAROL LINGE

Terry Says

Gosh, this is a terrible story. But I’m not surprised. If I decide –over the weekend — to sell my stock in a mutual fund, the price I get is the CLOSING PRICE on the next business day. And that seems to be the rule followed by your plan, which is perfectly legal. You just got caught in a downdraft that was very costly. But I don’t think you will get very far contesting this loss. You could contact Merrill Lynch and request an arbitration hearing — which does not require an attorney. But I think they have rules and precedent on their side.

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