Can a company retroactively remove money from my 401k?

[RSFlux]

I left a job around 18 months ago, from a company that offered a 401k plan w/ matching based upon seniority. In my last 401k statement, I found that they have removed a large sum of money from my 401k account. The financial institution that runs the account informed me that they had put too much money into my account, having overestimated the % matching I should have received.

What is the law about a companies ability to access my 401k account? How does the fact this this is 18 months retroactive come into play. Do I have any recourse?

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

Thanks for any advice!

 

[cbg]

So....you think that you should be allowed to benefit from their error?

 

[swalsh411]

Since you left your money in the plan you are still subject to the terms of the plan document which almost certainly states that the sponser is allowed to correct mistakes.

If you had rolled the funds over they would have a much harder (if not impossible) time recovering the overpayment.

 

[Concerned33]

Couldnt they also have removed any employer contributions from the account if he wasnt yet vested??

 

[Bruno]

Yes, if the monies are contributed in error.

 

[Beth3]

Agreed. It's not uncommon for an employee who participates in a 401(k) Plan to have monies withdrawn or added following the end of the Plan Year or the employee's separation. Causes include errors made in calculating contributions, following the annual Discrimination Test for the Plan, Plan audits, and departures of employees prior to the end of the Plan Year which can result in recalculated contributions.

Employers are required to comply with their 401(k) Plan Documents and that can definitely mean adjustments in employer contributions if an error was made or readjustment becomes necessary.