I received a letter from my 401K admin(Merrill Lynch) They advised that due to a system error my 401K allocation exceeded the 25% limit of my company (Macy's)stock fund. It was 74% of balance as of 03/14/16. The letter said I should consider diversification. My elections were to only have 25% as the company stock fund. The stock fund mentioned has experienced a dramatic loss since July of 2015 about $5000.00. I am asking ML to find the point of error and track forward the value of my 401K if it had been rebalanced properly as I chose and give me the option to have the funds restored if that would be in my benefit. ML rep stated that I really did not have much say in this. She said if they do the calculation then they would make the correction without my say even if this would result in further losses. I was previously told could leave the 401K allocation as it was if I wanted, but since ML admittedly made the error I think I should be given the benefit of which ever favors me.
If your instructions were not followed by the provider you may file a claim for compensation and seek damages
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Contact a local attorney. Preferably one who practices in finance and securities law and/or employee benefits. One would have to review the particulars of your plan, but this is worth at least investigating.
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