401k fund changes

john john

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Sep 12, 2004
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Participants in the US Airways, Inc. Employee Savings Plan, the US Airways, Inc. Pilots 401(k) Plan, the Future Care 401(k) Plan and the US Airways, Inc. Puerto Rico Savings Plan will soon receive a notification regarding fund changes that will take place within the plans on June 15, 2011. Depending on your elected notification method at Fidelity, you will receive either an email or a mailing with information on the fund changes.


What’s up with this

Fidelity Magellan will be gone among others and current funds will be change

"your current balances in any discontinued fund, as well as any future contributions, will automatically be mapped to its replacement fund(s)."
 
Participants in the US Airways, Inc. Employee Savings Plan, the US Airways, Inc. Pilots 401(k) Plan, the Future Care 401(k) Plan and the US Airways, Inc. Puerto Rico Savings Plan will soon receive a notification regarding fund changes that will take place within the plans on June 15, 2011. Depending on your elected notification method at Fidelity, you will receive either an email or a mailing with information on the fund changes.


What’s up with this

Maybe the company found a way to screw up our 401Ks...LOL :D

Terminating our retirements just wasn't enough :p

Who knows? Might be a good thing....or not.

Driver B)
 
This is a fairly routine manner. Every company I've worked for has either changed the fund mix or changed investment companies at some point.
 
IRA!!! You control it.

True, but there are stricter limits as to the amount you can contribute per year. And for some, notably pilots and some management types, their income is likely above the limit where the deduction is tax deductible (for traditional IRAs) or allowed (for Roth IRAs).

However, when I change jobs, I always move the $s into a Rollover IRA so I'm in control of the funds at that point, not the company I no longer work for.
 
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This is a fairly routine manner. Every company I've worked for has either changed the fund mix or changed investment companies at some point.
Was it for the better? Maybe to reduce the company’s cost passing the savings on to the employees. One can only hope.
 
Not knowing much about the specific US Plan I will tell you that Fidelity has on several occasions CLOSED the Magellan Fund due to a variety of reasons. One being the size and popularity of the fund. If a fund gets to big it can negatively affect fund performance. I had it happen to me on one of my 401K's years back. Vanguard also closed its popular Windsor fund as well.

So perhaps that's what's happening here????
 

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