I worked for a medical Company and they did some lay offs and I was one to be laid off. I put monies into my 401 and now they won’t release my money and I need to know how long a company has to hold on to my money?
Best answer:
Answer by jlf
They don’t just “return” it to you automatically. Read your 401(k) plan provisions. You can cash it out (unwise), roll it over into an IRA or (in some cases), leave it where it is. You have to make the choice and act on it.
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you have to fill out paperwork to withdraw the money and will face a penalty for doing so (10% most likely)…..they do no automatically give this to you
1- YOUR company does not “return” your 401k money at all – the 401k plan is SUPPOSED to be administered by a 3rd party company like Fidelity or Vanguard
2-You should be getting quarterly statements from THAT company
3-if you have never seen a statement, I would call the IRS on your company – SERIOUSLY! they sound like they are violating major federal laws and scamming you from the start
4-If you do know which company is the 401k administrator, and you HAVE been getting regular statements and can access your account on the internet (should be available for just about ANY 401k plan anymore) – call them directly and have them do a direct rollover to an IRA for you – once the money has been withheld from your paycheck, your employer has no more than 10 days to deposit it into your 401k acct – after that – they have no more control or say over your funds
get all your former coworkers together and get this 401k situation addressed before they steal you all blind