401K plan requirments....can I be banned from the 401K at my work if I don't comply?

[calaw]

What is the name of your state (only U.S. law)? GA

I've been a participant in my company's 401K for 5 years.

Now they say it's Federal Law that I fill out a form giving my net worth, assets outide the 401K, ss and drivers lis. numbers, and other personal info.

I think this is illegal, especially the part about my net worth and assets which is none of their business.

They say they will discontinue my 401K if I do not fill out and sign this disclosure form.

What can I do, I want to participate in the 401K but I do not want to divulge my assets or net worth which I feel is no one's business at my work or at my 401K plan's office.

Thanks.

 

[ecmst12]

If the plan requires you to fill out the form, then of course you have to fill out the form if you want to participate in the plan.

 

[Beth3]

Now they say it's Federal Law that I fill out a form giving my net worth, assets outide the 401K, ss and drivers lis. numbers, and other personal info I've been involved in the administration of 401(k) plans for many years and I'm not remotely aware of any such requirement. Your employer and the Plan Administrator need your social security number, name, address and birthdate, your annual salary, the percent you wish to defer, and beneficiary information but that's all they need.

The information your employer is asking for is not illegal but it's bizarre. Ask your employer (nicely!) to please show you a copy of the federal law that requires this andn as soon as they do, you'll be happy to comply.

 

[anteater]

I wonder what industry the OP's company is in. Financial services of some sort?

But even if... It is, as Beth3 says, bizarre to require that info for participation in a 401(K). And a federal law, no less???

 

[FlyingRon]

I'd complete the form, omitting all the personal asset stuff. As pointed out other than your identification and tax info, and the info on your salary from the job for which this is a 401(k) for.

There aren't any statutory limits or restrictions on a 401(k) that apply to anything other than that (of course if you work multiple jobs it's incumbant on you not to exceed the contribution limits).

Sometimes the providers ask for this information as "retirement planning" advice. Are you sure all the blanks on the form are MANDATORY?

 

[anteater]

Sometimes the providers ask for this information as "retirement planning" advice. Are you sure all the blanks on the form are MANDATORY?

Good point, Ron.

But being the cynic that I am... If the plan was sold to the company by a "financial advisor," it could be a good means to sniff out other employee assets ripe for capture, er... management.

 

[Beth3]

I wonder what industry the OP's company is in. Financial services of some sort?

But even if... It is, as Beth3 says, bizarre to require that info for participation in a 401(K). And a federal law, no less???

Maybe - but if that's the case, then the empoyer should be explaining that information is necessary to ensure there are no conflicts of interest. And if it's for retirement planning purposes, that should be explained as well and that the information is voluntary. But you sure don't need driver's license info for any of that.

 

[FlyingRon]

The drivers license is rapidly replacing the ssn as identity check for opening financial accounts. It's pretty much required even to open a bank account these days. It's for this reason I refuse to show my license# to anybody without just cause to see it (and that includes Wal*Mart clerks).

 

[bears00]

What industry are you in?