Re: IRAIf only 3% of the company was contributing to the 401k, then the company had costs (probably including compliance costs), so it may not (from the leadership's point of view) have been so "silly" to discontinue the plan. The question would be what could have been done to increase participation among employees.
It is certainly true that discontinuing the 401k is effectively reducing the compensation package even without a match from the company. You can ask for additional compensation but keep in mind that your tax saving didn't cost the company anything and they don't automatically have additional funds for this. (So they are likely to say no.)
I would suggest you should invest the money in the IRA in the same manner as it was invested in your 401k (and this should be consistent with your overall plan for asset allocation).
Are there any tax implications of moving this money currently sitting in an IRA account at another brokerage into my existing traditional ira in vanguard (current with a balance of $0)?
Also, this would mean i can no longer execute the 'backdoor' roth IRA contribution, correct?
Yes, the decision makes sense as a business decision to save some money. Also yes the pot of money they could pay from would be the some value less than or equal to the overhead/administration cost of the 401k. I'll have to figure that one out.
Statistics: Posted by mouseandcat — Fri Oct 03, 2025 4:58 pm — Replies 5 — Views 268