Maria Danna

Larry: Thanks for all your reassurances! --Maria

Note to David: Prudential will not tell me how the original early withdrawal was termed, other than "early withdrawal." I asked about the terms "hardship" or "loan," but Prudential staff would not specify. It definitely wasn't a rollover, but if Prudential coded it as such, it was their error.

I have contacted Prudential twice by phone explaining: 1) the early withdrawal in 2018 was not a rollover. 2) I paid taxes on this early withdrawal for tax year 2018. 3) I'm unable to return the overpayment as Prudential requested. 4) Prudential advisors have created a case number for this matter, but thus far, nobody on staff has advised me further. 5) I will not sign the form accepting a 250.00 "settlement payment" included with Prudential's notification letter which, to the best of my understanding, would release Prudential, the Plan, and my former employer's Retirement Board ("released parties") from all claims related to the overpayment.

In November 2018, while still employed full-time, I received an early distribution from my Prudential retirement plan that my (former) employer now claims was not available under the terms of the plan. Subsequently, Prudential Retirement informed me that I "received an overpayment in the amount of $8614.18 that was not eligible for a rollover." Prudential is requesting that I pay back this amount in full. I conacted Prudential to explain that this 2018 early withdrawaI was NOT a rollover to an IRA nor to any other retirement plan. At the time of my initial withdrawal request in 2018, I explained to Prudential that I needed the money to pay down miscellanous household, credit card, and medical care expenses. This early distribution was processed without delay, and was ultimately reported on an 1099-R for tax year 2018. I retired in July 2019, and am now receiving monthly payments from that same Prudential retirement plan. However, I'm extremely dismayed over this recent issue, and Prudential has been vague about my options or rights. Bottom line: I am unable to pay back this overpayment amount. I believe I'm the victim of an egregious clawback. What must I do? What can I do?