Employer Profit Sharing Plan Problem

[edandrews]

What is the name of your state (only U.S. law)? New York

My New York City firm of less than 20 employees recently has laid off all its employees including myself. The company has not closed, but only consists of the owner, who is on long term disability, and the comptroller, who is collecting outstanding company invoices and paying bills.

I own approximately $6,000. in the company Profit Sharing Plan. There is significant evidence that the company owner, who is also the plan administrator, has diverted this money into his own account, and will not be disbursing the money to me. One piece of evidence is that the owner has been unwilling to pay out the Profit Sharing Plan money of several former employees who left the company in 2007.

I have been told by the firm that manages the Profit Sharing Plan that legally the money does not have to paid out until my former employer files his tax returns in 2009 or the company closes. Is this accurate information? How can I ascertain if the company has closed?

What actions can I take to protect my money from theft by my former employer? Are there governmental agencies that will assist me? Can anyone direct me to a consumer bill of rights concerning the 401k plan?

Thanks. Edward

[pattytx]

401K plans are governed by ERISA regulations, which are enforced by the federal Dept. of Labor. Profit sharing plans may or may not be, depending on the plan rules. 401K plans and Profit Sharing plans are not the same thing.

Contact the federal DOL with your questions.