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401k distribution question- fully vested

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birch71

Guest
What is the name of your state? IL

I separated from service back in March. I have since been unable to find a job and am in need to access my 401k.

According to my plan adminstrator, even though I am fully vested (8 years of service), they say I cannot access the firm's contribution of the account until the second January after my separation of service unless I am over age 55.

I worked in the financial services industry and have never seen a plan provision like this. It would be sad to have to claim bankruptsy with a large 401k balance that can help me along for a bit.

I have exhausted the loan provisions of my contribution side of the plan already.

Thanks for your help in advance.
 


cbg

I'm a Northern Girl
You have not asked a question. I'm assuming you want to know if the plan administrator is correct.

Without having read your plan document, it is impossible to answer that.

You have a right to see the plan document. That's where you need to start.
 

Beth3

Senior Member
I haven't come across a Plan provision like that either. Have the employer or Plan Administrator send you a copy of the Plan Document and see what it says.

I suggest you also contact the federal Department of Labor and see whether this distribution restriction is allowed for in the 401(k) reg's. 202-693-4650 www.dol.gov
 
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birch71

Guest
Here's the statement

If You're 100% Vested

You can receive the full value of your Employee and Rollover accounts from the Retirement and Profit Sharing [401(k)] Plan immediately when you separate from employment.

If you're 100% vested and won't be age 55 or older in the calendar year you separate from employment, you're eligible to receive your Firm Account balance after the second December 31 following your termination or retirement. If you're 100% vested and are older than age 55 during the calendar year you separate from employment, you're eligible to receive your Firm Account balance immediately.
 

cbg

I'm a Northern Girl
I just sent a copy of your statement to a friend who is more knowledgable about 401k's and related laws than most attorneys (and yes, the attorneys in the law firm where she works, agree).

I'll let you know what she says.
 

cbg

I'm a Northern Girl
According to my 401k expert, the clause you supplied is perfectly legal.
 

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