Announcement

Collapse
No announcement yet.

401k Payment Washington

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • 401k Payment Washington

    I recently left my job. I filed the correct paperwork to have my 401K account closed and payment sent to me. The 401K administrator is the HR person whom I had problems with. Is there a time limit by when they have to release my money or can they leagally drag their feet?

  • #2
    What does the plan document say? How long has it been?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

    Comment


    • #3
      Document is very general

      The 401K document just says as soon as practable! The plan administrator is a person who I had trouble with (and my reason for leaving) and I am concerned she will really drag this out.

      Comment


      • #4
        How long has it been?
        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.

        Comment


        • #5
          Send a polite certified letter asking when the 401(k) distribution will occur. You might also want to contact the 401(k) trustee directly. Federal DOL handles complaints but you have to be able to document something wrong first, and so far, you are not there yet.

          As someone who is on the other side of this thing normally, it is not always easy. Some 401(k) plans are a lot easier to process then others. [Some 401(k) plans seem to be written by people who have never actually had to manage a 401(k) plan]. If you have some type of late payment (severance, vacation buyout) this may or may not be 401(k) wages and may or may not hold things up. I worked for one employer where we very specfically had the 401(k) plan formally altered to exclude late payments from the 401(k) plan wage definition in part to speed up the 401(k) final distribution. The employer has no access to the funds, has no vested interested in slowing things up, and often has a great interest in moving things along quickly so that the former employees will stop calling them.

          Past that, I have tended to work for some pretty large companies and we pretty much followed a check list of items for a 401(k) disbursement and the last item on the list is basically sending the final package/instructions to the Trustee. The employer does not actually have these funds, the trustee does, and sometimes the delay is on the trustee side of things. By the same token however it is possible for the Trustee to handle the final distribution dispite the employer's interference (or non-action) because the Trustee knows the funds do not belong to the employer. Of course, I suspect that going around the employer will not necessarily speed things up. I can remember spending a lot of time jumping through some fairly questionable processing hoops established by the 401(k) Trustee/Record Keeper.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

          Comment


          • #6
            I'd still like to know how long it's been. I have a pretty good sense of how long it usually takes, and if the poster would answer the question, I could tell her whether she's within normal parameters or not.

            I don't get the sense that it's actually been an unreasonable length of time; only that she's afraid it might be.
            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.

            Comment

            Working...
            X