401k disbursed without my consent...

[ExTex]

This past Friday I received a check in the mail from New York Life. I don't mind saying the company name because I am so angry about this.

Without sending me notice and letting me decide what I wanted to do with my 401k money, they cashed it out and sent over $9400 to the IRS! They sent me the check for the difference.
I did not want to cash this out, I would have rolled over if I had known.
Do I have any rights here? Is there anyting I can do?

I know these facts: I have 60 days to invest the money I received and I can use my own money to replace the money sent to the IRS, If I do this I will get all of my $9400 back. If I can not replace this money out of my pocket (which I cant) I will pay a 15% pentalty plus state and federal taxes.

I am loosing not only the entire year's investment of this money but I stand to loose so much with taxes and pentalties at tax time for 2001.

Thank you for any advice,
Linda
PS, i've spoken to others who also received a check without any option of roll over.
This money was half of a 401k that I had with my X husband. His company recently closed.

 

[ALawyer]

This is something that the insurance company may not have had an option about. Of all the insurance companies, New York Life is one of the better ones, and getting rid of money is not what they like to do. But ask their General Counsel, and express your indignation.

As you recognize, to avaoid tax you should immediately put the money in an IRA, and borrow the tax they had to withhold and put that in an IRA too.