Need help fighting former employer to pay my 401(k) account balance

[Guest Jennifer Porter]

I need help with cashing out a 401K. I quit work 2 years ago to go back to school after vesting 10 years in a 401K. I have been fighting with my former employers ever since to cash out. I finally got them to send me the lump sum paperwork to sign to cash out. Now what happens. I haven't heard back from them for over 30 days. How long do I have to wait? Are there any legal options I can take? I have weighed my options heavily and yes this is what I want to do. Please help.

[bzorc]

I would start with requesting a Summary Plan Description (SPD) from the employer, which should outline the parameters for getting your distribution out of the plan. Depending on how the plan is valued, 30 days could not be an unreasonable period of time to have to wait to get your distribution. If that is unsuccessful, you could then go to the Department of Labor and request that they look into the matter for you. That usually gets the employer to move on your request.

Good luck.

[Guest spritcha]

Check your Summary Plan Description (SPD) to determine if it mentions when benefits are paid. It is not uncommon for payments to take several (or many) months since they are usually paid after a valuation date. The Plan Administrator should be able to tell you approximately how long the payment process will be. Since you have received the paperwork, it appears that you are nearing the end.

[Guest Jennifer Porter]

I went back through the SPD (Summary Plan Description). The exact wording used is "The plan will commence distribution to you at the time you elect to commence distribution." Thanks for your help.

[Guest Jennifer Porter]

For anyone else that may be needing help with this all my leg work may ease your pain. One person replied to my need of help directing me to the Department of Labor. That was exactly the place I needed to go. They have a department there referred to as the PWBA (Pension Workers Benefits Association) they help fight employers over pension rights.