re: Employee forced to liquidate stock in 401k?

quote:

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Right now the stock is worth less than what he bought it at so he would be taking a loss if he sold. It is in a few mining companies that are still developing their reserves for when the market is right for them to start mining.

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Buck
Apologize...what I meant was that his purchase price was higher than current market value so he would suffer a loss...just as you stated.

You have a few good and incorrect responses, including mine. My only involvement was with my major employer's 401K; we had 5 choices of how to invest. Knowing friends in other industries that had similar plans some with more/less choices. I've never known any that had as part of their 401K, "private brokerage" accounts. First, sometimes 401K's can be administered through HR, but HR must follow rules and laws related to 401K accounts...I used to know this stuff.

I think something is wrong with the way this is presented. I do not understand how an option they allow in a 401K account could force a loss sale on an investment. I've heard of companies doing away with 401K plans, but these all allow roll-overs to traditional IRA plans or another 401K plan.

That's about it from me...just think he needs to ask for more explanation of choices from his employer.