K
Kelstone
Guest
My situation is this and I live in California:
I've worked for Company A for 6 years and am in very good standing. I have probably only missed a total of five days for being sick the whole time. One month ago I took a hardship withdrawal from my 401K ($3000.00) I was going to use it to purchase my primary residence. The Planned Administrator of Company A approved my hardship and did not ask me for proof at that time. I received my money from my account and ended up spending it paying off credit dept because the deal fell through on the purchase of my home. Company A was bought out by Company B about a month after my withdrawal was approved and no Company B is asking me to pay back the money in full in two weeks or be terminated. They say that since I did not provide proof that according to the ERISA and the IRS I am putting the plan and its assets in jeopardy. They say that if they are audited they could face penalties and fines.
I feel that the planned administrator of Company A should have never approved the withdrawal if he was required to have proof from me. Is it legal for Company B to do this and fire me? Am I responsible for this or are they? Please help, I am desperate.
I've worked for Company A for 6 years and am in very good standing. I have probably only missed a total of five days for being sick the whole time. One month ago I took a hardship withdrawal from my 401K ($3000.00) I was going to use it to purchase my primary residence. The Planned Administrator of Company A approved my hardship and did not ask me for proof at that time. I received my money from my account and ended up spending it paying off credit dept because the deal fell through on the purchase of my home. Company A was bought out by Company B about a month after my withdrawal was approved and no Company B is asking me to pay back the money in full in two weeks or be terminated. They say that since I did not provide proof that according to the ERISA and the IRS I am putting the plan and its assets in jeopardy. They say that if they are audited they could face penalties and fines.
I feel that the planned administrator of Company A should have never approved the withdrawal if he was required to have proof from me. Is it legal for Company B to do this and fire me? Am I responsible for this or are they? Please help, I am desperate.