Laid Off-Employer holding 401k funds

My Grandmother worked for a company in California for 22 years. They laid everyone off and closed shop in Calif. on Jan. 19th, 2001. To date they will not release her 401k money to which they did not contribute company money. It is all her money! They are based in Canada and have another location in Missouri. Is there a legal time limit after a person is released from a job that they are required to release that person's 401k account? We are scared that they are trying to steal her money. Someone please please reply..

When your Grandmother first opened her 401(k) account, she should have received a Summary Plan Description booklet. Over the years, at specific intervals, she should have received updated Summary Plan Description booklets as the laws changed. In that booklet is the name, address and telephone number of the Administrator of the Plan. She must contact the Plan Administrator and request the paperwork necessary to withdrawal from the Plan. If your Grandmother is not at least 59 1/2 years of age, withdrawaling from the Plan without rolling it over to something else, will open her up to penalties and possible loss of interest for a certain period of time, as well as the fact that she will have to claim this as income on her taxes in the year the payout is received by her.

Going through the paperwork, filling it out, etc., takes time. This is not like an ATM.

If she has filled out the paperwork, etc., and waited a sufficient amount of time, there is also in the SPD the name, address and telephone number of the governmental agency she can report the employer to.

Laid Off- Employer holding 401k

Well, she is 63 years old, and just had open heart surgery Thursday... So we don't have to worry about age and circumstance. Here's a little more on this: They stopped taking her contributions on Nov 12 2000 a full two months before they closed shop. She has an end of year statement from the investment company (appropriated from the company by a friend in HR. Everyone else hasn't even received that! I called the investment company, who referred me to the Plan Consultant/Representative (another company), who referred me back to the employer's HR. They all say they cannot do anything until the employer figures out the amount in each employee's account... Meanwhile, the employer has EVERY extension forwarded to voice mail. Like no one is there. And of course, no one calls back when you leave a message. The Plan Rep. told me that they promised to have it done by the end of Feb., but now that is being extended because since the lay off, they are short staffed. In essence, a big run around. Shouldn't they have had planty of time to figure this out for the two months after the last contribution was deducted? I really feel that they are up to something and plan to skip with everyone's money. There is no government agency listed on the statement or I sure would have called. Her retirement isn't much, but it is all she has to show for the last 22 years. WHat should I do?

Surf the web for ERISA (Employee Retirement Income Security Act). Within all that wording of the Act, towards the end, should be the name, address, possible telephone number, how to file a complaint, etc. Try the U.S. Department of Labor website first.

Hope everything turns out okay. 63 is still young! Has she applied for social security yet or is she going to wait until 65?