Company executing QDRO also withdraw my 401k balance

[Viktorram]

Good evening,

I'm seeking out information about what should I do regarding this matter. I had a QDRO where a total of $15K will be transferred out of my wife's 401k account. Everything was fine, I opted to receive this to my savings account instead of my 401k, but the company in charge of executing the QDRO not only transferred the 15K (minus the 20% for taxes) but also took all of my balance of my own 401k amount into my savings account.

How would this affect me tax wise and my current 401k? Could they return it all back into my 401k without penalization? is there money lost due to this mistake?

thank you for taking the time to read this and answering if you are.

-V

[david rigby]

Is the "remainder" less than $5K?  Some plans include a provision that automatically distributes a balance below that threshold.

[CuseFan]

If you are still employed then this was likely an error which you should discuss with both your employer and the plan service provider to have rectified (i.e., repaid to the plan). You didn't mention any 20% tax w/h attributed to your balance, which further makes this look like a mistake. David's comment above only applies if you no longer work for the plan sponsor.

[Viktorram]

14 hours ago, david rigby said:

Is the "remainder" less than $5K?  Some plans include a provision that automatically distributes a balance below that threshold.

Yes, it was $300

9 hours ago, CuseFan said:

If you are still employed then this was likely an error which you should discuss with both your employer and the plan service provider to have rectified (i.e., repaid to the plan). You didn't mention any 20% tax w/h attributed to your balance, which further makes this look like a mistake. David's comment above only applies if you no longer work for the plan sponsor.

It was a mistake and I'm still employed.

I spoke to the person in charge of executing the QDRO and they will transfer back the money and the company will pay out any gains lost due to the mistake.

 

Thank you all!

-V