401k status change

[lockedoutatwork]

What is the name of your state? New Jersey. I have been locked out at work for almost 3 months. I have been trying to get my 401k status changed from active to inactive so that I can access my money. My employer has been requested to change but will not do so. I am technically still employed by them, but there has not been any activity within the account for 3 months. I would like to know where I stand legally with this. Do they have the right to keep my status active.

 

[cbg]

As long as you are still employed by the company, the employer is prohibited by Federal law from allowing you to cash out your 401k. Because of the pre-tax status, 401k's are VERY strictly regulated and they can only be accessed when your employment terminates or under some very strictly controlled exceptions which do not appear to apply here.

Your employer is operating within the law.

 

[Beth3]

Locked out? You must be on strike.

As long as you remain an employee of this company, federal law prohibits you from accessing your 401(k) unless you qualify for a hardship withdrawal or your employer allows loans from the Plan. Changing your status to inactive won't change anything.

 

[lockedoutatwork]

For Beth

Thank you for your reponse. I would just like to clear one thing up. A lock out is different from a strike. My union did not elect to go out on strike. We showed up for work and were instructed to leave the employers property because there was not contarct and therefore there is no work. Think of it as a strike by employers against the employees. Again thank you for your response.

 

[cbg]

Lockout or strike, the answer is the same. Your employer is forbidden by Federal law from allowing you to access the funds in your 401k account while you are still employed by them unless you qualify for a hardship withdrawal (nothing in your posts suggests that you do) or the plan document permits loans (which you would have to repay, or else get stuck paying taxes on the amount next time you file your taxes).