401(k) plan from a company which was recently acquired

[Guest DougE]

I have a 401(k) plan at a company which was recently purchased. The original company was a subsidiary of a larger compnay. I am now an employee of the new company. Part of the acquistion was the dissolution of the old 401(k) plan. I have been told it could take 6 months to a year to roll my money over to my new 401(k) or an IRA. Can this be right? I should be able to move my money when I want. Thoughts?

[Guest Dook]

From what you describe it sounds like the 401k plan was terminated. Upon plan termination, many companies file for a "letter of determination" from the IRS. This letter gives some protections if the plan is later audited by the IRS.

In this case the letter may take several months to get and the plan assets are not distributed until the letter is received.

As a participant you are not able to take your funds until the whole plan is liquidated.