Need Some Answers From Those Who Are Financially Savvy
By pyewacket
@pyewacket (43903)
United States
September 30, 2008 8:27pm CST
Okie dokie...here's the deal. I'm still due funds from my deceased mother. It was a 401K plan when she worked part time at Macy's. As soon as she died two years ago, I was informed that since I was her daughter I was entitled to this money. And no we're not talking millions (oh how I wish..LOL)...but I was given the quote of a certain amount, and this amount seemed to remain steady throughout all this time up until about a month ago
Now a month ago, I was FINALLY sent the right forms and affidavits to fill out, sign and get notarized, but when reading the affidavit, the amount quoted was some $75.00 less than the original amount I was given.
Just today, I got a further form to fill out to send back to ....gasps...Merrill Lynch who is the backer of my mother's 401K plan...and this time the quoted amount due me is some $114.00 less than the second amount...in other words if one combines the total of $75.00 and $114.00 you get $185.00 less than the original amount that was first quoted to me and was stable for a long time
My question is, since I've never dealt with 401K plans...my question is, do they fluctuate in value? I had assumed they remained stable and steady in the amount that was in them...and of course, is the new discrepancy due to the lousy economy now?? And if some of you who have been keeping tabs ....Merrill Lynch I believe was one of the financial firms having a "tad" bit of trouble.
I want to rush and get these forms in before nothing is left! Like why the heck should I be done out of this money...right?
I want to rush and get these forms in before nothing is left! Like why the heck should I be done out of this money...right?4 people like this
14 responses
@sedel1027 (17846)
• Cupertino, California
1 Oct 08
As far as I know all 401Ks are investment based. So if the investments went up or down over that time frame their would be a fluctuation in what you are owed.
3 people like this
@pyewacket (43903)
• United States
1 Oct 08
It could be it went down too, as my mother has been deceased for two years, so naturally nothing has been added to the account...does that sound right to you?
@sedel1027 (17846)
• Cupertino, California
1 Oct 08
Yep. We don't have much in my husbands 401K and I haven't really been tracking it recently, but I don't expect a pretty report at the end of the quarter.
1 person likes this
@tamarafireheart (15384)
•
1 Oct 08
Hi pye,
You better get your skates on and get your money as soon as possiable, you never know what is going to happening so best of luck.
Bright Blessings,
Tamara
3 people like this
@winterose (39887)
• Canada
1 Oct 08
if they are stock market investments, yes they will fluctuate, now if the principal is guaranteed then only the interest will fluctuate.
1 person likes this
@winterose (39887)
• Canada
1 Oct 08
if you look up 40IK investments, you get some sites to look at,
here is one of them
http://www.401khelpcenter.com/
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
I still wouldn't know what kind of 401K investment she had...I might have some old papers of hers around but it would take ages for me to sift through things.
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
I have no idea exactly what kind of 401K it is...I don't think even my mother did
1 person likes this
@Lakota12 (42600)
• United States
1 Oct 08
Ok this is what I have heard.
The 401ks are put is stocks that are run by the stock market and since wall street is failing so are your stocks! thats why the payment is going down.
When my son in law had to put into the 401k they asked how much did they want to put in to the stocks that went in to the trading part they signed for 25% of what he put in and only in the low rate ones so he wouldnt loose so much if the stack market failed.
The rest is surpose to be safe hmmmmmmm is what I said to my daughter the other day!
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
Yes....mmmmmm is right. I'm sending those forms back tomorrow while there is still money left ...if the market goes down even more, I might wind up with $2.00 left..and that wouldn't be pleasant
@pyewacket (43903)
• United States
3 Oct 08
On the form I had a few choices...to roll it over as an annuity payment type thing, or get it in one lump sum, which is what I opted for, I also checked the area that I wanted the taxes automatically deducted so I don't have to pay taxes on it later....as enticing as it would be to have the whole amount without being taxed, I just didn't want the headache of having to pay taxes on it later on
@acampbell79 (18)
• United States
1 Oct 08
Most 401K's actually do fluctuate...and since the market crashed so hard yesterday, I would try to get that money ASAP before the balance is zero. Merill Lynch is one of the ones that is major trouble and that is why most people are freaking out about their retirement. If things don't change and they don't get bailed out or get a loan, all that money we have been saving for retirement is gone!! Do what you can to get that money now...trust me!
@pyewacket (43903)
• United States
1 Oct 08
I had a feeling that 401K's did fluctuate, but I was surprised as the money originally quoted to me remained the same for so long...but yes, the lousy way the economy sure hasn't helped
2 people like this
@Thoroughrob (11742)
• United States
1 Oct 08
It is based on the stock market. Get those forms back to them or it will keep going down, I am afraid.
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
I'm mailing off the forms tomorrow via certified mail....
@reinydawn (11643)
• United States
1 Oct 08
Your (deceased) mother's 401(k) plan is subject to the same things as any active plan out there right now. Depending on what it was invested in, it could decrease quite a bit. I think most of your mother's was in very stable funds from the sound of it. Many older people would tend to put the contributions into bonds and such that would guarantee a minimum return, since they need the money sooner and can't chance fluctuations in the market (as we have now). Some of us "younger" contributors use the more agressive accounts which are just really tanking out on us right now, but in the past did VERY well. $100 or so in losses right now is really nothing (well, depending on the total value of the account). The economy is not doing well right now and it's probably going to get a bit worse. The sooner you get the money out of there the less you will lose.
One other thing that will cause it to decrease are the fees associated with the account - they still accrue while the money is still sitting there.
1 person likes this
@whiteheather39 (24403)
• United States
1 Oct 08
Pye these type of funds do fluctuate, they are investment funds and fluctuate according to the market. I do hope they were not just invested in Merrill Lynch shares because if they are company shares and the company is not doing well they will drop. Another important thing to remember is that 401K funds are pretax funds so when you withdraw them unless you just transfer them into an IRA account you will have to pay income taxes on them. This I know for a fact!!
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
The 401K plan was tied up with stock with where she had worked...Macy's and Merrill Lynch was the one handling it. I'm sending those forms back tomorrow certified mail while there is still money left in it..LOL. I was able to access the website and her account which is now under my name as beneficiary...crap..the amount quoted in the form is now about even $20 less now...I also opted for the 10% Federal Tax withholding...so the taxes will be taken out
@LittleMel (8742)
• Canada
2 Oct 08
I don't know what 401k plan is, but if it is an investment then yes the value can change, higher or lower as the time passes. if it is backed up by the govt then usually the value doesn't change much, but in the case of financial crisis then the govt may determine the value and then it will depend on what they say. if it isn't backed up by the govt then I guess whatever the value is in the market that's what you get. But since the value changes over time, there is still possibility that by the time your forms are processed the market stabilizes or at least the trend is going up so you may receive more than you thought you would
@pyewacket (43903)
• United States
3 Oct 08
That 401K plan is tied to the stock market...as I began to learn, so no wonder it fluctuated in value. I decided to mail the form back today...before the market really goes haywire and there's nothing left. And yes, you might be right..maybe by the time they start processing it, the value might have gone up...here's hoping
1 person likes this
@pismeof (855)
• United States
1 Oct 08
Pye,As long as this account was active it will reflect the market value of whatever funds the 401k was tied to.I'd have to guess you are expieriencing what everyone in the market will encounter.I'd also have to wonder if you aren't getting some type of fees for the transacction.
@teapotmommommerced (10359)
• United States
1 Oct 08
It depends upon where or how she had her 401 K set up. If it was in an fix account like a saving account them it will stay the same or grow. It is is mixed in the stocks or bonds then it will fluctuate like the market dose.
1 person likes this
@pyewacket (43903)
• United States
1 Oct 08
I'm beginning to suspect her plan was tied up in stock that she didn't even know about...I'm sending those forms back tomorrow....while there is still some money left in it.
1 person likes this
@littleowl (7157)
•
2 Oct 08
Hi Pye-if I were you I would sign the papers get them off and accept what you can as I know nothing about the financial status of merill lynch..so get your hands on the money while you can..I would especionally the way the economy is going at the moment...bb littleowl
1 person likes this
@pyewacket (43903)
• United States
3 Oct 08
I went ahead filled out the forms and mailed them off today certified mail...that way I can track it when they get it. The form told me to expect it to take about 21 days to receive the check...mmm..a nice pre-birthday present..LOL
@jerzgirl (9291)
• United States
1 Oct 08
Hi Pye. Her 401K lost money when the market lost money after this financial fiasco. Unless she opted for only government bonds, which are fairly stable despite what we see, her money will increase with the market and decrease with the market. They should have given you the money right away, but now that fund has lost money because of the bank failures and mortgage crisis. You shoudl contact them to see if you can pull it out or transfer the funds to a more stable fund until you are allowed to withdraw it. I don't know if that's permitted, but it can't hurt to find out.
@pyewacket (43903)
• United States
1 Oct 08
Well one of the MAIN reasons I didn't get the money right away as I was dealing with a lot of legal smeagel crap. My mother didn't list or name me as a beneficiary...I've been all this time going through the ropes of filling out a zillion forms and affidavits and the place that she had worked and had the 401K plan didn't seem to be in any hurry to move their fannies about it. The form I'm to fill out now suggests I can opt for an annuity or a lump sum....think I'm opting for the lump sum. As far as putting it in a more stable fund..heck, nowadays WHAT is stable?????
