Guest Denise Murphy Posted September 22, 1999 Posted September 22, 1999 Client is 49, was terminated 13 years ago from a company who had a 401k/match program. Client was 100% vested at the time of termination. Administrator is holding onto the money until the terminated employee reached the age of retirement (65). I thought a terminated employee had the right to take their vested dollars at any time. Can they hold onto this clients money until the client reaches the age of 65?
Guest P A Weick Posted September 22, 1999 Posted September 22, 1999 It all depends on how the Plan reads. Internal Revenue Code allows distributions to be withheld until normal retirement age (Section 401(a)(14).
John G Posted September 22, 1999 Posted September 22, 1999 Does this company force you into owning just their own stock? Are the selection of investment options limited? If so, you may want to see a lawyer. A company that refuses to let you rollover the funds faces more stringent standards in terms of their fiduciary duties. Depending upon your circumstances, you may be able to shake the tree with a letter from a lawyer. The company may also be in trouble if they failed to provide mandatory documents... a common problem with small companies. Before you take that route, be sure to read the plan. As noted in prior comment, the plan may allow for the transfer/rollover.
Recommended Posts
Archived
This topic is now archived and is closed to further replies.