Lump Sum Distributions

[Guest robin s vatalaro]

You should obtain a copy of the Plan's Summary Plan Description. This document is required by law to be given to all Plan participants. It should spell out when you may take a distribution. Some plans allow for distributions only after the "anniversary date following termination" has passed. For example, if the Plan year end is 12/31, and you terminated on July 2, 1998, and the Plan has the anniversary date requirement, you would not receive your distribution until some time in 1999. Generally, the Plan sponsor should comply with distribution requests within a reasonable time from request, and also in accordance with the terms of the Plan document. Without knowing the terms of your Plan, it is difficult to give advice to your specific situation. Good luck!

[Guest leladona]

Need help. Requested a lump sum distribution of my 401(k) plan from a former employer on July 31, 1998. To date have not received distribution check. Are there any rules or regulations regarding the timely distribution of funds? What is the fiduciary responsibility of the plan's trustee. Do I have any recourse if trustee fails to distribute funds?

[Guest ERead]

There are numerous distribution provisions allowable under ERISA. The most conservative being when you reach the Normal Retirement Age as specified in the Document of the plan. The most liberal being as soon as administrativly feasible after seperation. I've seen distributions take as little as three days and as long as several years depending on plan provisions and circumstances.

My best suggestion to prior participants is to ensure that your prior employer is updated with any address/phone # changes as soon as they occur, and to not let the issue fall aside. Find out what the policy is, and then play the waiting game. You may not want to set up any accounts until closer to the time of distribution as your account rep, may get anxious for the money.

It's a big waiting game, sometimes you get lucky, and sometimes, you write a lot of letters. Just hold tight. Good Luck

[Guest Nicole]

Also, did you call them to see if they received they paperwork and ask when you can expect the check? Sometime one phone call is all it will take.

[This message has been edited by Nicole (edited 09-21-98).]

[Guest leladona]

Thank you for your responses to my questions regarding lump sum distributions. There seems to be a problem with my vesting in the plan (employer's match). The administrator made an error and distrubted funds with a vesting percentage. The employee of the Trustee of the plan has advised that he will not be making any distributions until 60 days after the end of the plan date (December 31). Again I thank you for your assitance.