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Posted

I have a plan with a six month wait to get a distribution following termination of employment. The plan received from the Bankruptcy Court a "Stipulation and Order to Allow Mr. Dimmick to close out his 401k - Chapter 13 Bankruptcy Case No. ####". The stipulation states that the debtor may close out the 401k in order to purchase a vehicle to allow travel to and from work. He is in fact terminated, he just hasn't satisfied the six month wait specified in the plan document. What to do, what to do??

Posted

Probably just what the plan says. Sounds like the the plan is not doing anything to prohibit the participant from exercising his rights, or to violate its own terms.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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