A QDRO was submitted and calculated for the time of the marriage for 401k disbursement. The amount due was approximately $26,500, and a "clerical" was made and the receipant was cashed out in the amount of $67,000, more than was the ending balance at the time of separation. Participant was not notified and found error on own and brought it to the attention of 401k company. Since the money was wire transferred into the bank account as cash and an overpayment of $40,000, approximately 3 weeks ago. What are the ramifications? Can the funds be withdrawn automatically from the bank account and placed back into the participating 401k? What if the funds have been spent and are not paid back?What about lost interest future earning? Is the 401k plan responsible for the error and replacing funds regardless?
