How to Manage Your 401(k) During a Company Acquisition

Learn how to track your retirement assets and protect your savings when your employer is acquired by another company.

1. Locate your current plan documents. Find your most recent 401(k) statement before the transition begins. Note your total balance, your current contribution rate, and the list of funds you currently hold. Having this record protects you if data is lost or miscalculated during the transfer of systems.
2. Watch for the transition notice. Federal law requires your employer to provide advance notice of any 'blackout period'—a time when you cannot change investments or take withdrawals. Read this document carefully for exact dates. You may want to finalize any pending investment changes before this period starts.
3. Evaluate the new plan offerings. Compare the new plan's fee structure and investment menu against your old one. Look for the 'Summary Plan Description' to see if the new company provides a different employer match. Even if the platform looks different, the core mechanics of tax-deferred growth remain the same.
4. Assess your consolidation options. After the transition is complete, you have three main choices: keep the money in the new employer's plan, roll it over into an individual retirement account, or move it to a former employer's plan if you have one. Each path has different tax implications and fee structures to consider based on your long-term goals.