I have worked for a large multinational in the US for many years and whilst working with them, I have built up a sum of money in a 401(k) with Fidelity. However, about 2 years ago, my division within the company merged with another company to create a joint venture, which is still majority-owned by the first company.
This new joint venture switched to using a different 401(k) provider at the start of this year (2019) (which coincided with their benefits package splitting off from the larger company). Since then, I have been making 401(k) contributions into the account with the new provider, but it seems I am unable to continue contributing to the 'old' account.
Because of this, I was interested in rolling over the 'old' 401(k) account into an IRA, so I would have fewer trading restrictions and more investment options. However, I have been told by Fidelity that the 401(k) is considered to be in a 'protected' status, because I am still working for a subsidiary of my original company. So, because of this, I am not able to roll it over.
The 'old' 401(k) account is not 'frozen', in the sense that I can still rebalance it (within the normal excessive trading restrictions); however, I am not able to roll it over into an IRA.
To me, this seems rather strange. I would think that a 401k should fall into one of two categories: either it's active with my current employer and I can make contributions into it, or it's from a former employer and I can roll it over. It seems odd that I should have a 401k where I am not able to do either of those things.
So, my questions are: is this normal? Is it right? Is there anything I can do about it (short of leaving the company entirely)?