Active employee & participant wants to cease contributing and pull his money from a plan.

[K-t-F]

Situation is this....

An employee who is a participant in the plan (SH Match 401(k) ) simply doesn't want to play anymore.  He wants to take his money and invest it somewhere else... away from the plan.  There is not a distributable event... not 59-1/2...  not disabled... nothing.   The employee is out of luck... correct?   Money has to stay put.

[401_noob]

i guess he could petition his congressman/woman to amend IRC §§401(k)(12)(E) or 401(k)(2), but yes, he is stuck until he reaches a distributable event. 

[Larry Starr]

2 hours ago, K-t-F said:

Situation is this....

An employee who is a participant in the plan (SH Match 401(k) ) simply doesn't want to play anymore.  He wants to take his money and invest it somewhere else... away from the plan.  There is not a distributable event... not 59-1/2...  not disabled... nothing.   The employee is out of luck... correct?   Money has to stay put.

Yeah, and he might also want six extra weeks of vacation and a $10,000 raise.  He can't get those either.

[chc93]

He can terminate his employment and *really* go play somewhere else with his money and all.

[K2retire]

Or as my grandmother used to say "People in h*!! want ice water, too!"

[FormsRstillmylife]

The plan could provide for participant individual brokerage accounts as an investment option.  Schwab has PCRA accounts that would let him play with his money as do other mutual fund houses. 

[ratherbereading]

Does he have rollover money? Our plans allow participants to withdraw their rollover money anytime. 

[Larry Starr]

11 hours ago, CEW said:

Does he have rollover money? Our plans allow participants to withdraw their rollover money anytime. 

Assumes facts not in evidence.  Read the original question for the issue raised. 

[ratherbereading]

10 hours ago, Larry Starr said:

Assumes facts not in evidence.  Read the original question for the issue raised. 

Hmmm. Not sure what your point is... Our documents allow participants to take a distribution of their rollover source regardless of age and employment.

[Mike Preston]

7 hours ago, CEW said:

Hmmm. Not sure what your point is... Our documents allow participants to take a distribution of their rollover source regardless of age and employment.

Quite the comedian.

[Larry Starr]

On 7/17/2018 at 9:43 AM, CEW said:

Hmmm. Not sure what your point is... Our documents allow participants to take a distribution of their rollover source regardless of age and employment.

Hmmmm.... here is the original posting:

Situation is this....

An employee who is a participant in the plan (SH Match 401(k) ) simply doesn't want to play anymore.  He wants to take his money and invest it somewhere else... away from the plan.  There is not a distributable event... not 59-1/2...  not disabled... nothing.   The employee is out of luck... correct?   Money has to stay put.

Just pointing out that there is nothing in that question that remotely suggests rollover money is involved.  MOST documents (mine too!) allow distribution of money that rolled in; your comment, while true, just didn't relate to the original posting. You were answering a question not asked, and thus my comment.  Does that help?

[ratherbereading]

On ‎7‎/‎17‎/‎2018 at 5:09 PM, Mike Preston said:

Quite the comedian.

 

 

16 hours ago, Larry Starr said:

Hmmmm.... here is the original posting:

Situation is this....

An employee who is a participant in the plan (SH Match 401(k) ) simply doesn't want to play anymore.  He wants to take his money and invest it somewhere else... away from the plan.  There is not a distributable event... not 59-1/2...  not disabled... nothing.   The employee is out of luck... correct?   Money has to stay put.

Just pointing out that there is nothing in that question that remotely suggests rollover money is involved.  MOST documents (mine too!) allow distribution of money that rolled in; your comment, while true, just didn't relate to the original posting. You were answering a question not asked, and thus my comment.  Does that help?

Going to ignore your condescension and snarky reply-- you're from Mass which explains it.   I merely ASKED if rollover money was involved.  Just because he didn't mention rollover money doesn't mean it wasn't involved.  Further, are anyone's comments any of your business?  Sheesh.

[Larry Starr]

No, I live in MA but I'm from NY and that's what explains it!  Maybe you are too (I am NOT a Red Sox fan!).

Lighten up!  My response was simply factual; neither condescending nor snarky.  Lots of people are reading these threads who are looking for guidance.  You may have thought that your question was helpful, but (to me and some others) it clearly was not dealing with the question asked. I bet most folks reading this knew that IF there was rollover money, he could get at it. The participant wanted OUT of the whole thing. 

When someone has a question, it is best to try to find out exactly what the issue is and answer that question; not some other question.  You didn't just ask if there was rollover money; you provided an answer to his question that required there to be rollover money.  If you had just asked if there was rollover money and waited for the answer (which would have been no), then you would not have had an off target answer. And if the answer had been yes (as unlikely as it seemed) then you could have pointed out the options with regard to rollover money.

We do have to be careful about telling people how to build the watch when they need to know what time it is.

And yes, EVERYONE'S comments are EVERYONE'S business.  Otherwise, why were my comments your business?????   And I'm not afraid to attach  my name to my comments.

[K-t-F]

On 7/19/2018 at 7:11 AM, CEW said:

you're from Mass which explains it. 

Does everyone who is not from MA assume that people who live here are horrible?  Because we aren't .

No Rollover money... just a guy who doesn't want to participate in the plan anymore so he wants to take his money.  He can't and I told him that.  Of course with the internet when people don't receive the answer they like they start "Google-ing".  He must have found something and pulled a few snippets from his find that he thought backed up his case so he questioned my answer.  For a quick confirmation of my knowledge I posted the question to see if there was anything I missed.  That's it.  Thanks to all!