08-01-2005, 04:56 AM
can they do this? i was terminated 3 months ago and i send them all forms to get some of my retirement money. i called my former employer to check if they received the forms. they did get the forms but they informed me that my check was on hold because they think i took money before i was terminated.
08-01-2005, 08:21 AM
Took money how? Embezzled it? Took a loan from your 401(k) Plan? Took a hardship withdrawal? Something else?
08-01-2005, 01:32 PM
well, when u withdraw money from your retirement account you have to submit some applications to your employer and then they send them to the insurance. the insurance company then proceed and send the money to u. i called the insurance and they say they have to receive the forms thru the employer but as i stated the employer told me they are holding it.
08-01-2005, 01:39 PM
That's as clear as mud. Let's try this one more time.
Your employer has told you they are holding up your 401(k) paperwork because they think you took money from your account. So DID YOU take an early withdrawl from your 401(k) account? If so, was it a loan or a hardship withdrawal? Or something else?
Have you asked the employer WHY a previous withdrawal (assuming you took one) is now holding up closing out your account?
08-01-2005, 02:05 PM
no, they said they lost a company check and the say i did take the check, so they say i owe them that money and thats why they are holding my check
08-01-2005, 02:28 PM
So they're holding your 401(k) proceeds because they think you stole money from them? That would be unlawful. If you wish to, you may file a complaint with the federal Department of Labor. www.DOL.gov.
08-01-2005, 04:00 PM
oh, that mean they cant do this , right?
08-02-2005, 03:03 PM
I would also suggest contacting the vendor (ins. co) for the 401K. They cannot withhold any 401K contributions or withholdings with the exception of what is written into the 401K plan. Are you rolling this over or taking the money out?
08-02-2005, 03:20 PM
i already contacted the insurance and they said they havent received the papers from the employer plus they say i have to talk to the director. i called my former employer and they say they have the right to investigate it. (its been over 2 months)
08-03-2005, 01:42 AM
Just because they say they have the right does not mean they really do have the right. Talk is cheap.
08-03-2005, 02:24 AM
can u tell me what the best thing to do because i really need the money since i didnt get unemployment
08-03-2005, 06:22 AM
jj, I already told you what you need to do. Call the Department of Labor.
02-22-2006, 09:06 AM
What do you make of this email? I got this from the HR director upon my leaving a company a week earlier than my two week notice stated in my termination letter. Turns out MONTHS ago I took some time off (days to go interviewing to tell you the truth) and they never took this money out of my check. I get a wonderful new job and they pull this:
We have processed your request regarding your 401k distribution. As
indicated in your Termination Letter dated 1/24/06, you owe COMPANY XYZ
$970.96. Please contact me to make the appropriate arrangement for
payment and to pick up your 401(k) check.
You can express mail my 401K check to the following address and the receptionist can sign for it. I am unable to pick it up from your offices:
I will get back to you on appropriate arrangements for payment to COMPANY XYZ totaling $970.96 for monies due to early termination.
I was not FIRED... I left this job to start another one. First of all, can they hold my 401K Check? Secondly, do they have grounds to say that I OWE THEM MONEY EVEN AFTER I LEAVE? Isn't it THEIR fault for not withdrawing the money in the first place? This spot is so unprofessional that I had to RUN from that job.... what's your take?
02-22-2006, 11:12 AM
Carly, please post your question only once. All the responders here read all the forums.