401K – Withdrawal
You have a 401K with an employer and the employer was the only one making the contributions (Safe Harbor) and you left the company and wanted to take the money and roll it over into another IRA account, but there was a default on the account due to the fact that the employer did not keep the account up to date with contributions, is the employee still entitled to the money in the employee’s account.
Permalink Submitted by Alan Spross on Tue, 2012-02-28 19:12
A safe harbor plan requires the employer to make fully vested contributions. However, there are two different funding methods:
1) Matching contributions – employer only contributes for employees that contribute
2) Non elective contributions – employer makes a non elective contribution (eg 3% of pay) for everyone whether they contribute or not.
Perhaps the employer changed to a matching contribution. The employee may not be entitled to a matching contribution, but if one is made that balance should be available to the employee in full after leaving the company.
If the employer has not met the requirements of the plan, you can request assistance from the Dept of Labor.
Permalink Submitted by Valerie Carroll on Tue, 2012-02-28 19:39
Thank you very much. I appreciate your time.