What is the time limit for 401k distributions?

[Guest MaggieRose]

What are the regulations regarding the length of time a former employer must comply with upon termination of employment? How long can an employer hold 401k funds before being forced to distribute the money to a former employee?

[Ervin Barham]

Check the plan document. It will have a "general" time frame for distributions. You can do this by requesting a Summary Plan Description (SPD) in writing from the Employer. Plans are not required to make distributions until age 65, although most distribute sometime earlier.

In most plans, the plan administrator may have an administratively reasonable time to process the distribution.

If you read the SPD and feel that the Employer/Trustee/Plan Administrator are not following the terms of the plan, you may contact the Department of Labor (the SPD will provide that information) to possibly having a grievance looked into.