The stock market dropped precipitously in one day the other day. It can also go up on a given day. Being out of the market for any period and having to buy back in is a risk. You could lose many thousands of dollars over any number of days. Of course, you could gain too if you get lucky. It's gambling.Your mileage may vary, I put in a request to sell 2 funds (VTSAX & VTIAX) and move to cash last wednesday, Put in an order to employee distribution on Thursday , on Friday I can see on the account page they zeroed out the account and I recived check on Monday ( Aug 5 2024 ) 3 business days , I was even fine untill end of the week , did a mobile deposit to Fidelity on Monday late evening might take 2 days to clear . so about 7-10 days total.I'm seeing people on other forums also saying that Ascensus told them they will not transfer investments in-kind to another Solo 401(k) provider - that you have to liquidate the investments to have them transferred elsewhere. Does anyone else find this a huge problem? It may seem like no big deal. But transferring those assets can take a while. You'll be out of the market all that time. You have no idea what the price will be when you have to buy back in at the new provider. Your number of shares owned may change which will affect your dividends.
Is it just me or this the cherry on top of a complete mess? Ascensus has so many problems. But the one relief was "Oh you can always just transfer out." But now we can't transfer out without selling all our investments and risking buying back in at who knows what price after who knows how long the transfer takes? This never even crossed my mind that it would be an issue. I would have raced to transfer to another provider before the Ascensus switch to avoid this, even though, for other reasons, it would have been highly inefficient for me to do that.
Is anyone else extremely troubled by this inability to transfer in-kind to another provider? Or is it for some reason not as big a deal as it feels like to me?
It almost feels like Ascensus coercing you into staying with them, despite all their problematic features (or lack thereof), by throwing up all these roadblocks and difficulties.
Also, if anyone can disconfirm that this is the case and has evidence we can in fact transfer in kind to another Solo 401(k) provider, please share. But I'm seeing more and more reports that they will not transfer in-kind so it's sounding like it is the case.
Edit: I found this relevant thread "Ascensus Does Not Transfer in Kind" if anyone is interested:
viewtopic.php?t=436470
its not that bad, I have worked with my family and friends 401k rollovers in the past and this was the fastest in my personal experience. My own HSA administrators to Fidelity HSA took about 26 days in 2018.
Just another thing I never even imagined having to deal with. Vanguard transferred in-kind. I assumed (as with everything else) that a company specializing in 401(k)'s would do things even more efficiently and effectively than Vanguard, who wasn't really in that business themselves. I was wrong again.
Statistics: Posted by GoldenBear17 — Wed Aug 07, 2024 4:18 am