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Can I cancel a 401k plan?

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  • Can I cancel a 401k plan?

    I'm a small business owner and signed my company up for a 401k program. I realized after I signed all the documents that there are service charges in the agreements that I was told by the salesperson wouldn't be there.

    Is there a legal grace period to cancel this agreement without penalty?

  • #2
    We would have no idea. You would have to have an attorney review the agreement. But I would say, did you think that someone was going to administer this plan for free?
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    • #3
      Of course I wouldn't think that someone would administer the plan for free. Who said anything about that? I paid a relatively large up-front lump sum. It was my recollection that this would be the only charge due to the fact that I have fewer than five employees and that the monthly charge only came into play when the company grew beyond four employees.

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      • #4
        The answer remains the same. Contrary to popular belief, there is no law that grants you the automatic right to cancel a contract as long as it's done within x amount of time. You will have to have an attorney in your state review the documentation to see if you are bound to continue the plan.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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