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employer stopped putting in my 401 K

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P

peepsight

Guest
What is the name of your state? Tennesse
Our Company sent out a letter this week stating that they will no longer match our 401K investments, so they can give us better insurance, most of the workers there only work for the safty net of the 401 K , can they just stop matching us? and say oh well, can we geet our investment out and roll it over into an intrest bearing account or something?
 


I AM ALWAYS LIABLE

Senior Member
peepsight said:
What is the name of your state? Tennesse
Our Company sent out a letter this week stating that they will no longer match our 401K investments, so they can give us better insurance, most of the workers there only work for the safty net of the 401 K , can they just stop matching us? and say oh well, can we geet our investment out and roll it over into an intrest bearing account or something?
My response:

Where is your employment contract? What does it say about the 401K plan?

What is a "geet"?

IAAL
 
P

peepsight

Guest
employer stopped putting in my 401K

the contract states that the company will match .50 onthe dollar up to 6% you contribute and are fully vested after 3 yrs. of employment (I have been there 3 yrs in DEC.)

geet = bad typing :)
 

I AM ALWAYS LIABLE

Senior Member
peepsight said:
the contract states that the company will match .50 onthe dollar up to 6% you contribute and are fully vested after 3 yrs. of employment (I have been there 3 yrs in DEC.)

geet = bad typing :)


My response:

Are you, perhaps, confusing an "employee handbook" with an "employment contract"?

IAAL
 

Beth3

Senior Member
peep, this is the critical question. Does the 401(k) Plan Document guarantee that the employer will make a match or is the match discretionary??? If it's discretionary, they can can stop making the match any time they wish. If the Plan Document guarantees the match, the employer has to amend their Plan and file the appropriate documents with the IRS and DOL before they can stop making the match.
 

cbg

I'm a Northern Girl
And to answer the other part of your question, no, you cannot get your investment out. Under the law, once the monies are in the 401k fund, they cannot be touched except in VERY limited circumstances, none of which apply here, as long as you are still employed by that employer. In order to get your money out of the 401k fund, you would have to quit your job. Then, and only then, you can have your 401k monies distributed. However, unless you roll it over into another qualified fund (an IRA, a new employer's 401k fund) you would have to pay tax AND a penalty for early withdrawal.
 

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