Is it legal for my employer to know what I'm doing with my money that is in the 401k, that comes from my employer, without my consent? Is the financial services company that manages my 401k permitted to report that information to my employer?

  • 1
    It's certainly legal for them to know. Neither you nor they will be breaking the law if you tell them. Are you asking if they have a right to know, even if it's without your consent? – Mike Scott Mar 24 '15 at 20:56
  • If they don't have my consent do they still have the right? – webb Mar 24 '15 at 21:07
  • @webb I've updated the question per your comment - please update further if needed. – Joe Mar 24 '15 at 21:22
  • 2
    Why do you care if they know? It's not like the fact that you are investing in large-cap versus small-cap or whatever is deeply personal information that you would be embarrassed to have others know, is it? Are they pressuring you to invest in one thing versus another? I'm just wondering what the issue is. – Jay Mar 24 '15 at 21:24
  • 4
    If by "cause I take some of it out" you mean you have taken a loan from your 401k plan, then the boss is certainly entitled to know that regardless of how hurt your feelings might be. In some 401k plans, new contributions are prohibited while a loan is outstanding. In others, new "contributions" are used to pay off the loan (plus interest) and so they are being sent to the plan but not showing up as new contributions in your 401k account. If instead, you took a hardship distribution from your 401k, then it might well be that new contributions are prohibited for some time. – Dilip Sarwate Mar 24 '15 at 22:00

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.