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View Full Version : Do I have to pay back 401k amounts? If so, how can I do this without penalties? Florida


LadyJag
07-10-2006, 01:29 PM
I apologize in advance for the long post.
I went on medical leave back in March and was out for about 8 weeks. The company required that I use all my vacation, sick and personal time before going unpaid.
Well, my stupid manager didn't notify HR of my leave, so the company kept cutting me regular paychecks (I have direct deposit). I expected that the paychecks would stop after my paid time off was exhausted, but since my manager didn't pass on the LOA forms, the checks DIDN'T stop.
So I resigned instead of returning from my medical leave. Bam! The company says I owe them x amount of dollars in net wages. So I wrote them a check for the net wages a month ago, with "PIF" in the Notes area. That check has STILL not cleared my account. I then decided that since I already had to move the money I had in company stock, I would roll over my 401k money into an IRA.
Well, I just received a letter from the company, telling me I have to pay them for the money they deposited into my 401k during my leave. I am enraged because #1, if I take the money from my IRA, I have to pay a penalty. #2, if I try to get the money from my personal bank account, then it's like they were FORCING me to make 401k contributions when I was not getting a paycheck! All because my idiotic manager dropped the ball! :mad:

Help, please! I feel like I'm being punished for my manager's mistake! What are my rights? If I have to pay it back, can I tell them I'll pay it at $2/month until paid off? Why doesn't my manager have to shoulder any responsibility for his mistake?

UPDATE - Well, my check marked "PIF" cleared my account, so I do not have to pay back the 401k amounts. (Yay!)

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