401K disbursment

[blks]

What is the name of your state (only U.S. law)?
Pa
I worked for a company for 2 1/2 years when I was let go without a reasonable explanation. I wanted to cut all ties with the company so I requested that my 401K be rolled over into my IRA account immediatly. I wa let go Aug 1,2008 and the 401k disbursment was in Sept. 2008.Now it's almost a year later and the company e-mailed my that they made a mistake. They disbursted the full balance of my 401K and are now saying that I was only 60% vested and are requestiing a repayment. The monthly statements at no time noted a vested amount. Also they said that according to the plan it should have not be disbursed until the end of the calendar year. It's clearly their mistake. The company said that if I do not request a repayment from my investment bank they will. What rights do I have, can they go directly to my investing bank and what if any are the tax implications?What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

[ecmst12]

There should be no tax implications, the money isn't being disbursed to YOU so it shouldn't be taxed.