401k/Roth undisclosed "Forfeiture Fee" halves retirement rollover. Help!
March 11, 2013 8:50 AM Subscribe
I recently rolled over my old 401K and Roth accounts through an old employer and held by ADP. Throughout the process, I was told the only fee would be the $50 "account transfer fee". But when the checks arrived half of my money was missing!
posted by iheijoushin to work & money (8 answers total) 1 user marked this as a favorite
A year ago I left a crappy retail job for a much better job at a software company. While working at the retail job, I made significant contributions to my employer sponsored Roth account controlled by ADP Investment Services.
Over the last year, I watched as my account not only took a significant loss in terms of its investments, but also was chewed up by fees. I made several calls to ADP's India call center, whose nice employees were unable to answer most of my questions regarding a Roll Over, but did help me get the ball rolling on paperwork. They informed me there would be a $50 account closure fee. Fine, I thought, better than losing double that amount with another bad year of investing and fees.
Fast forward a few weeks later, and I receive my disbursement checks totaling half of my investments. When looking through the account statements I see that nearly half of my Roth was taken as a "Forfeiture Debit". I was incredulous that I would lose HALF the value of my retirement account! The folks in India could only be sympathetic to my first world problem but could neither fully explain the fee, or explain why I was not notified that half the value of my account would be taken.
I'm almost 30 and am trying to play catch up with my retirement accounts after being dealt a pretty bad hand with the economy. Losing 50% of the value of my Roth is really upsetting, especially as I contributed generously at a low-paying job that offered next to no matching (.5% of 1%).
As someone who slogged through some pretty awful customer service jobs, I have kept my cool throughout this frustrating ordeal. But I am not getting the help I need to feel this issue is resolved. GetHuman.com's numbers are all to ADP's Cobra Assistance Branch and I am at a loss of who to contact...If I had known my account would be halved in value by trying to roll over I would have suffered the continued losses and waited until I could have avoided this surprise fee.
Any help or advice would be most welcome!