Restricted access to optional retirement account

[sageoffools]

Hi, I work for a public university in NY. When I started, in addition to the mandatory NYS retirement program, I also signed up for a small optional retirement contribution. This optional contribution is only my money, there is no employee contribution to this account at all.
After about 2 years I realized that I would not be here for very long, so I stopped my optional contribution to this account. Now I would like to withdraw these funds and close this account. (I realize that I will be charged a penalty, as well as the actual taxes on these funds).
The problem that I have is that I contacted the company handling my retirement funds (Fidelity) and they informed me that the university has set up the optional retirement account so that it cannot be withdrawn unless I retire, or terminate my employment.
Do they have legal standing to deny me access to my own money? (I would like to reiterate that they have made no contribution to these funds whatsoever)

 

[ecmst12]

If it is a 401K or similar type plan, then the IRS says you can't close the account or make any withdrawals until retirement, or after employment is terminated. It has nothing to do with Fidelity or your employer. You may be able to take a loan out, but that is generally discouraged and not what you want anyway.

 

[cbg]

They not only have legal standing to do so, they would be in violation of the law if they did not do so.

 

[thedoctorisin]

The IRS also allows, but does not require, a 401(k) plan to offer hardship withdrawals.

 

[cbg]

However, the IRS restricts hardship withdrawals to very limited reasons. "I'd like to draw my money out and close my account" is not a valid reason under IRS rules.

 

[xylene]

However, the IRS restricts hardship withdrawals to very limited reasons. "I'd like to draw my money out and close my account" is not a valid reason under IRS rules.

I suppose it depends on what the poster means by

After about 2 years I realized that I would not be here for very long,

 

[cbg]

When she IS no longer employed there, she can remove her money. As long as she is still with the employer, IRS regs do not permit it except under VERY limited circumstances, and nothing she has posted suggests that any of those circumstances apply.

Or are you suggesting that the statement you quote means she is dying and wants the money for medical expenses?