Question by frxa: would the current problems with merryl lynch affect my 401k?
i have a retiment account with merryl and i just keep hearing about all their problems. does anyone know if i will take a hit over that? also should i cash out and get hit with the taxes?

Best answer:

Answer by The Professor
Whatever you do, don’t cash out! That is the worst possible thing you can do. Your assets at ML are probably safe, but if you are really worried….

If you are still working for the employer which has the 401K at ML, there really isn’t anything you can do. You employer determines who manages the 401K plan. However, I suspect you are asking the question because you have an account at ML from a former employer.

In that case, set up a rollover IRA account at Vanguard or Fidelity Investments. You can then rollover the proceeds of your 401K account to the rollover IRA. This is not a taxable transaction so there will be no taxes or penalties. However, make sure ML transfers the money directly to your new account.

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