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What Happens When My 401k Retirement Plan Is Frozen?

In a 401(k) “freeze,” an employer temporarily halts all new contributions and withdrawals within its 401(k) plan. You are most likely to experience a 401(k) freeze following a merger, while the new company determines what to do with the 401(k) plan it has inherited. Sometimes your employer has the ability to freeze your 401(k) account indefinitely and can withhold for any reason. Usually, around that you can open an account in your name (Self Directed IRA) and invest in physical assets such as precious metals in your name as opposed to a traditional brokerage account where it’s in their (street name registration) name.

Source: Investopedia by Brian Beers

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