401(k) transfer/withdrawal

[Guest jladuca]

Can an employer legally restrict or impose a time constraint on employee salary reduction contributions or vested employer contribitions?

After separation from service, can a plan restrict a transfer or rollover to another company 401(k) or IRA if a request is not recieved within a stipulated time period?

[This message has been edited by jladuca (edited 01-21-99).]

[Wessex]

I am interpreting your question to be whether a plan is required to provide in-service distributions and/or to provide immediate distribution upon separation from service. The general answer is no. A plan is not required to provide for distribution of salary reduction contributions or vested employer contributions at any time prior to normal retirement age. Of course, a plan can provide for earlier distribution under circumstances permitted under the Internal Revenue Code. You should check your SPD and perhaps the plan document to see whether the plan provides for earlier distributions.

[Guest NOBIV]

Maybe I am not understanding but, I do not believe the question is understood.

My wife, if I am understanding the question right, was in a similar situation. The company is required to make the contributions of the employees tax free witholdings into the respective plan with in a certain time - I do not know what that time is but I do know it exists. However, I am not quite sure regarding the company match. They are under no obligation. For instance, if a company match is made in the form of stock, they can choose to distribute monthly, quaterly, or at the end of the year. Does WESSEX have a response?

[This message has been edited by NOBIV (edited 01-20-99).]

[Guest NOBIV]

I believe I misspelled a couple of words in my last posting. Sorry. I have a question. Are there time limits associated with a request of a 401k roller into a personal IRA. Situation, persons company merges with another company fall of '97. Financial transition in process. Person leaves new company in early spring '98. Persons requests rollover fall '98. New employer response - can not conduct the rollover until the transition is complete. Result - transisiton is still not complete 1'99.

[This message has been edited by NOBIV (edited 01-20-99).]