Unable to close 401k - is that legal?

What is the name of your state?I work for a private company here in Utah. I rolled over a large sum of money into my new companies 401k plan. I have worked for them for just over a year now and have contributed to the plan for 6 months

For personal reasons, I have decided to completeley close out and withdraw all of my money out of my 401k account. According to HR our plan does not allow for that and the only way I can get my funds out is to quit. Is this legal? Does a company have that much control over MY MONEY??

Do I have any options besides quitting?

I do understand I will be hit with a 10% penalty and a 20% tax withholding and I am okay with it.

Thanks

Your HR Manager is 100% correct. The heck with your plan, FEDERAL LAW does not allow that. As long as you are still employed by this employer, you MAY NOT LEGALLY close the 401k account under ANY circumstances or withdraw a portion of the funds out except in VERY limited circumstances. It would be ILLEGAL to allow you to draw out those funds now and if your employer were to allow it anyway, the IRS could and very likely would disapprove the plan and your employer would not be allowed to offer a 401k plan to any employees. The IRS does NOT take this lightly. Your employer has NO choice in this. It's not just their plan, it's the LAW.

Have I made the situation clear enough?

There is no statute that denies an individual to cancel and conclude his/her 401k account,albeit penalties and taxes per said account. This can be done without employers approval.

Manifestor said:

There is no statute that denies an individual to cancel and conclude his/her 401k account,albeit penalties and taxes per said account. This can be done without employers approval.

Click to expand...

In addition, I would like anyone to show the statute that requires an individual to file for federal income tax. Your search will be fruitless, because there IS no law stating it.

Have you actually READ section 401k of the IRS code?

Oh, fine, another tax protestor. The IRS has prevailed in court EVERY TIME this has come to trial. Take your rant somewhere else.