401 K online policy?

Hello:
I have a question about so called 鈥渞ound trip鈥?transactions. I have done this (by accident) without knowing about this policy. On the company鈥檚 website that mages 401K there is no info that I can find about this situation. I got a letter from them saying that I 鈥渆ngaged in excessive exchange activity鈥?although at none of the occasions was anything intentionally. Obviously the amounts were small. Now they decided to 鈥渞evoke my online trading privileges鈥?for one year!! (not so sure what something I am paying for can be called a privilege. My questions to you:
1 How legal is this and what kind of privileges they have to do it? (including the time).
2. Can I fight this in any way?
3. Even if they can impose this shouldn鈥檛 be there a way for me to sell my investments in case of massive losses ONLINE instead of waiting for days
to do this via regular mail?

Sorry to say, but yes it is perfectly within the rules outlined when you bought into the fund...( those pages and pages that you just glance at before you hit " accept")
BUT... I'm fairly certain that you should have recieved a " warning " letter....did you " round trip" more than twice? three times?..... Even so...if you can get a phone number, and talk to a rep...sometimes by " playing dumb" and asking for " help" to protect your capital...they can either over-ride the revocation...or at least trade you into something conservative ( safer) for awhile.
IT'S worth a shot....good luck.
P.S. I know you're angry, but don't show it...play the " guy that needs help"......everyone likes to be a hero....but they'll turn on you if you start " demanding this and that!!!"

Yes, it is legal. Fund Managers have the right to refuse a trade at anytime. They discourage short term trading to protect the "fund" excess trading can cause the fund value to decrease. I worked for a large financial institution for seven years.
The policy is outlined in the funds prospectus which most of us do not read. You may be able to find more information regarding this on the IRS web site.
Remember your 401K is for long term investing. I am not in a position to give advice without knowing all the facts but most people that trade frequently end up selling low and buying high the best thing to do is choose a balanced portfolio mixture of stocks and bonds that you are comfortable investing in and let it go.

Good Luck.