KazzaDoom

I had no idea there was no 10% penalty for withdraws from IRAs. Is this the case with both Traditional and Roth IRAs ?

As to the question of the plan being changed to no longer allowing these kinds of payments - I was told that was NOT the case and there has been no amendments to the plan. The reason I am not wanting to move to IRA is because so far...the 401k QDRO has covered me from having to pay the 10% penalty for early withdraw. When requesting a withdraw in the past thru their website I have been selecting TERMINATION because that is what THEY told me to select because I am not nor have I ever been employed with that company. Like you stated the SPD spells out what you can do rather than what you can not do. The SPD clearly states a partial or total withdraw is allowed for termination. I'm guessing the real issue is with the term termination... Thanks for the response

I have a 401k account that was setup thru a divorce QDRO order. I have been making periodic minor partial withdraws from this account for close to 4 years. However the latest request for partial distribution was denied. The plan provider is now claiming that the plan does not allow for partial distributions and they claim that the previous withdraws over the last few years have been an "oversight" on their part. They stated that this "plan rule" can be found in the Summary Plan Description ( which I promptly download from them ) and it DOES NOT spell out any rules regarding partial withdraws for plan participants. I was polite and I asked them to point out exactly where the rule was...but they could not. They then claimed that it is forbidden according to the adoption agreement with the plan administrator and they are legally bound to abide by it. My question is do I have any recourse action I can take ?