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still holding previous employers' 401k & DC safe harbor plan

Home Retirement Accounts still holding previous employers' 401k & DC safe harbor plan

  • Zzyzx Zzyzx 
    Participant
    Status: Physician
    Posts: 124
    Joined: 09/24/2018

    Have a couple leftover 401ks from very large, stable hospital systems and am reviewing yearly earnings and losses in the statements but getting confused:

    1.  100% vested at time of leaving employer, 401k with fidelity and low fees and low ER funds: VIIIX, VEMPX, VBMPX, vanguard target funds, etc.   Looking at dividends in transaction history I see each dividend separated out into 4 parts: QNEC, basic, matching, & deferral contributions.  Google explained QNEC but what is the difference between basic and deferral on purely dividend contributions?  And does matching mean that the employer is still matching a % to each dividend?

    2.  Also still have DCP safe harbor plan with Univ CA from residency.  Similar low fees and ER’s and fund types.  Looking at dividends in transaction history I see each dividend split into 2 parts: pre tax rollover and DC plan safe harbor.  Is this also a match on each dividend?

    Based on info above, is it best to still keep both or roll one into the other?

    Thanks

    It’s psychosomatic. You need a lobotomy. I’ll get a saw.

    #180268 Reply
    Avatar Bmac 
    Participant
    Status: Physician
    Posts: 282
    Joined: 10/21/2017

    It is probably just showing the dividends on the funds from each source (basic vs match, etc.) rather than ongoing matching from the former employer. Should be no problem leaving them where they are. However if you have a 3rd 401k at your current employer which is also good, you could transfer them so all your 401k assets are in one place.

    #180282 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1701
    Joined: 03/01/2018

    Your plan balance is actually composed of multiple sub accounts (pretax deferral, Roth, safe harbor, profit sharing, etc) that you typically don’t see but are tracked in the background, and it seems that’s what you’re seeing with the details on the dividend transactions. Nothing to worry about. And no you’re not getting any employer match or contribution on the dividends. Those amounts are just the dividend earnings on the holdings allocated to those particular sub accounts.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #180383 Reply
    ChadCFP ChadCFP 
    Participant
    Status: Financial Advisor, Website Sponsor, Small Business Owner
    Posts: 67
    Joined: 10/04/2017

    Have a couple leftover 401ks from very large, stable hospital systems and am reviewing yearly earnings and losses in the statements but getting confused:

    1.  100% vested at time of leaving employer, 401k with fidelity and low fees and low ER funds: VIIIX, VEMPX, VBMPX, vanguard target funds, etc.   Looking at dividends in transaction history I see each dividend separated out into 4 parts: QNEC, basic, matching, & deferral contributions.  Google explained QNEC but what is the difference between basic and deferral on purely dividend contributions?  And does matching mean that the employer is still matching a % to each dividend?

    2.  Also still have DCP safe harbor plan with Univ CA from residency.  Similar low fees and ER’s and fund types.  Looking at dividends in transaction history I see each dividend split into 2 parts: pre tax rollover and DC plan safe harbor.  Is this also a match on each dividend?

    Based on info above, is it best to still keep both or roll one into the other?

    Thanks

    Click to expand…

    Yea, nothing to worry about. There are no rules on what needs to be listed on 401k statements, it seems like your statements have greater details. It is a good problem to have but can lead to head scratching at times. No, you would not be getting a match on dividend payments; it is probably listing the dividends earned on the different sub-accounts (i.e. QNEC, basic, matching, deferral).

    If your current employer has a good and comparable 401k plan, never a bad idea to consolidate for easier management and tracking.

    Chad Chubb, CFP ® | WealthKeel LLC
    https://wealthkeel.com/wci | Gen X & Gen Y Physicians

    #180400 Reply
    Zzyzx Zzyzx 
    Participant
    Status: Physician
    Posts: 124
    Joined: 09/24/2018

    Your plan balance is actually composed of multiple sub accounts (pretax deferral, Roth, safe harbor, profit sharing, etc) that you typically don’t see but are tracked in the background, and it seems that’s what you’re seeing with the details on the dividend transactions. Nothing to worry about. And no you’re not getting any employer match or contribution on the dividends. Those amounts are just the dividend earnings on the holdings allocated to those particular sub accounts.

    Click to expand…

    ah thanks.  will these sub-accounts in any way interfere with pro-rata rule?  I recall choosing pre-tax for these accounts but safe harbor was so long ago and automatically deducted because we didn’t contribute to soc sec in residency

    It’s psychosomatic. You need a lobotomy. I’ll get a saw.

    #180510 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1701
    Joined: 03/01/2018
    will these sub-accounts in any way interfere with pro-rata rule?

    Click to expand…

    no. only applicable are balances in traditional, SIMPLE, and SEP IRAs

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #180528 Reply
    Liked by ChadCFP

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