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401K Distributionj

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S

s guss

Guest
What is the name of your state? Arizona

I left my employer in April, 2004. I "had" a 401K. Approximately 3-4 months ago I requested paperwork regarding my options for distribution of my 401K. This past week I received a check for my "cash out" of my investment. This was done without my authorization by my former employer. They said that since it was more than 30 days that I had requested the distribution forms and that they had not yet heard from me, they had the right to request cash distribution be sent to me as they wanted to remove me from the enrollment. Is the company legally able to do this? Please advise. Thank you.
 


Beth3

Senior Member
Yes, they are legally able to do this. 401(k) Plans typically call for a forced distribution if the employee has less than $5,000 vested in the Plan. Your request for a Distribution Request Form apparently went astray. Why didn't you call back months ago?

If you want to avoid paying taxes and an early withdrawal penalty on the distribution you received, you can still put the money in an IRA and report that on your tax return for 2004.
 

jamtam

Junior Member
Don't know what to do with my 401k forced distribution

I know this is an old thread but I'm in the same boat today where my previous employer administered a forced distribution on my 401k. Now, the check value is over $5k, even over $15k. Since 20% of taxes have already been withheld, how do I avoid further taxes from being taken given that I cannot easily roll the funds into an IRA due to the maximums allowed?
 

Indiana Filer

Senior Member
I know this is an old thread but I'm in the same boat today where my previous employer administered a forced distribution on my 401k. Now, the check value is over $5k, even over $15k. Since 20% of taxes have already been withheld, how do I avoid further taxes from being taken given that I cannot easily roll the funds into an IRA due to the maximums allowed?
Jamtam, BECAUSE this is an old thread, you need to start one of your own. It's considered bad form to post your questions on someone else's thread. It could cause confusion between two different situations, and the laws in different states.
 

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