Help - Search - Members - Calendar
Full Version: JNJ Stocks & 401K
BenefitsLink Message Boards > Retirement Plans > 403(b) Plans, Accounts or Annuities
rpescev
Dear Sir or Madam:

Allow me to introduce myself. My name is Ramon N. Pescevich and I
worked for Johnson & Johnson until 1995 when downsizing occured. Last
month I received a letter from my former employer telling me that I
would receive a cash dividend check from my 401K which I would pay a tax
on. The company is expected to save millions with this move. I was also
informed in the letter that the checks are to be paid out quarterly
starting at the beginning of this month. I wanted to set up a DRIP. I
purchased 1 share of JNJ stock and with this check I plan on reinvesting
into JNJ stock. So far the telephone lines for JNJ where down for 5
days. They had an option 9 for the people who are affected by this to
call that number. There is no more option 9 at the voice prompt.
Stocks for JNJ at the beginning of the month
were $70-$75. Today JNJ stock is at $80. Why am I going to spend my
cash dividend buying JNJ stock at $80 a share when I could have brought
that same stock at $70 a share? Why is JNJ doing this to their former
employees? Are there any legal actions that one can take so that one
can purchase these shares in a timely manner? Who is getting this money
with their delays? Hoping to hear from you soon. I would like to thank
you for your time.

Yours truly,
Ramon N. Pescevich
ESOPwizard
Have you inquired whether you are able to take a distribution on your account? You could rollover to an IRA (but I'm not certain whether IRAs are eligible to paerticipate in dividend reinvestment programs). Your summary plan description should have an explanation of your distribution options.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2012 Invision Power Services, Inc.