401k Safe Harbor Question

[RTChief]

I was recently released from my job; I have been there over 11 years so I was fully vested in the retirement plan.  I will probably have to request a disbursement from my 401k to stay afloat until I find a new job.  My employer informed me that I can on get a disbursement on what I allocated to the plan and that all matching/safe harbor could not be disbursed or rolled over to another plan  for a year.  Is this true? 

[Lou S.]

It is quite possible the Plan is drafted that way to avoid processing multiple distributions since you may very well be entitled to a 2017 contribution.

Though I believe features like the one you are describing were more common in the past, they are still allowable and used by some plans now.

It fact the plan can be drafted to delay payment until you reach retirement age.

 

[ETA Consulting LLC]

You should request a copy of the Summary Plan Description (SPD) and review your options.  It is written in plain language and should address your question.

Good Luck! 

 

[RTChief]

Thank you