Nightshifter
Junior Member
What is the name of your state? Indiana
I have a 401K from a previous employer that I am trying to cash out. In October of 2004, I filed the appropriate paperwork with my FCU to open an IRA for roll-over. It took longer than 90 days for the check to arrive (dated 12/31/04, and didn't arrive at my doorstep until 2/4/2005) so my FCU closed the account associated with it. At the time, I wasn't aware the 401K company still had an open account seperately. Once I realized the FCU had the account closed, I wanted to cash the check (accepting penalties) and use the money for home improvement.
This meant that the 401K company needed to recut the check (for the same date as for as I cared) and issue a corrected 1099-R. No problem, right? The 401K company said they simply needed a letter from the account manager from my old employer stating to do that. She agreed to do that because "it's your money."
Today, I get a phone call from the account manager (owner of business to former employer) saying that there was bad news, there was "too much paperwork to do" and she suggested I take the check to the bank it was written to and have them cash it for me... The bank it is written to is in Connecticut, I'm in Indiana...
Where am I legally? Do I have the right to demand the employer take the action I requested? Can I take the check to the IRA company and say, "Don't deposit this in the account, just cash it out to me"?
Obviously, this has tax implications and I need to resolve it as quickly as possible...
Thank you to all that can help me understand where I stand and what I can do now...
I have a 401K from a previous employer that I am trying to cash out. In October of 2004, I filed the appropriate paperwork with my FCU to open an IRA for roll-over. It took longer than 90 days for the check to arrive (dated 12/31/04, and didn't arrive at my doorstep until 2/4/2005) so my FCU closed the account associated with it. At the time, I wasn't aware the 401K company still had an open account seperately. Once I realized the FCU had the account closed, I wanted to cash the check (accepting penalties) and use the money for home improvement.
This meant that the 401K company needed to recut the check (for the same date as for as I cared) and issue a corrected 1099-R. No problem, right? The 401K company said they simply needed a letter from the account manager from my old employer stating to do that. She agreed to do that because "it's your money."
Today, I get a phone call from the account manager (owner of business to former employer) saying that there was bad news, there was "too much paperwork to do" and she suggested I take the check to the bank it was written to and have them cash it for me... The bank it is written to is in Connecticut, I'm in Indiana...
Where am I legally? Do I have the right to demand the employer take the action I requested? Can I take the check to the IRA company and say, "Don't deposit this in the account, just cash it out to me"?
Obviously, this has tax implications and I need to resolve it as quickly as possible...
Thank you to all that can help me understand where I stand and what I can do now...
Last edited: