401k Delay

[leosporin]

What is the name of your state?
California

I was dismissed from my job over 6 months ago and have been trying to cash out my 401k. I was just told by the company benefits manager that they cannot cash it out until my workers comp case settles and they decide the effective date of my termination. Is this legal??
Thanks so much....
leosporin

 

[Beth3]

Possibly but without knowing the specifics of your WC claim and why your termination date is in dispute, it's impossible to say. What I can tell you is that you cannot cash out your 401(k) while you are still an employee, even if you are an inactive employee.

If the term date is uncertain, I see no reason why you can't contact your employer and formally quit, thereby establishing a term date. What I can't tell you is what effect that will have, if any, on your WC claim.