401k Run-a-Round

[November Rain]

What is the name of your state? California

OK, the company I work for signed me up for a retirement plan without my consent or knowledge. I received the first statement for the 401k/ Retirement plan in September 2003.

I told the owner, the HR dept. (Owner's wife), my General Managre and the Plan Administrator that I didn't know anything about it and wanted it closed.

So far, I have received two more statements and, yeah, they quit putting money in, but haven't closed he account out. I made the same statement to the Plan Admin, who agreed to close it out... and hasn't.

I contacted the company that the 401k is through, they told me I had to close it through the employer.

I NEVER signed anything, nor was I ever told that I would be signed up for anything, nor was I given a choice as to whether I wanted to be signed up for this.

I keep getting the run-a-round and brushed off, I'm tired of it!

What can I say or do to get the Plan administrator off her lazy @$$ and close this account out?? Isn't this fraud for them to use my name without my consent?

 

[Beth3]

Fraud?!? Do you even know what a 401(k) IS?

It's a retirement savings account that an employer establishes EXCLUSIVELY for the benefit of their employees. Depending on how the Plan is structured, you and/or your employer may make tax deferred contributions into it so you have money put aside for your future retirement.

I can't imagine why you are being so hostile about this but demanding the employer close the account they established in your name is a dumb move. If you don't want free money from your employer, please tell them they are welcome to send it my way.

I strongly suggest you go back to your employer, tell them you may have acted hastily because you didn't understand the situation, and ask them to please explain to you how their 401(k) Plan works.

If you are absolutely insistent upon passing up this benefit, then the employer closing the account and making no more contributions in your name may not necessarily be a simple matter. Depending on how their 401(k) Plan is designed, participation may not be voluntary - and it would be so stupid (and hence unanticipated) for an employee NOT to want their employer to make a contribution, they may be having to do legal research to see if that is even possible. Additionally, these plans are highly regulated by the federal government and reversing the transactions to date would be fairly complex.

I seriously urge you to consider getting down off your high horse and reversing your decision. Unless you are a trust fund baby and don't have to worry about your future retirement needs, you'll be very sorry one day that you refused to allow your employer to put money aside for your retirement.

 

[November Rain]

FREE Money.. ha ha ha.. that's funny!! They keep the money when they fire employees (or when they quit)!! These people think that they can't win a case against the company to get the money they and this employer have put in. Ive spoken to a few of the past employees about their 401k "money".

I've had problems with 401k's (& IRS) before and prefer not to have anything to do with them - ever

The company is failing financally, for many reasons, and none of us are sure how long the place will be open - even though the owner is trying everything he can to stay open...

I don't trust them.Period. And in order to avoid a potential lawsuit over this money, if I did continue it and they let me go,but kept the $, I would rather not have this "gift".

I make decent money, and set aside 20% of each check, but that money is also there immediately in an emergency, already taxed and I have as long as I want to make up that amount taken (and am not told what I can and can't do with it). And no one has to know my business. If I buy a home, why should my employer know? They aren't paying for it.

Basically, to this employer, if you don't work in the office and aren't family, you are nothing to them. The position I have is one that is vital to the company, it took them 3 months to find me (I was the only one who applied that had the skills and experience) - otherwise they'd have gotten rid of me long ago (for I am not a male....)

I was nice when I spoke to the plan admin. and I did let her know I wanted out. Now, I am angry that my being nice has been ignored. The account bears my name, therefore it will be attached to my SSN and affect my standing with the IRS. Yeah, great some gift - I don't want it. And what makes me the most angry about this situation is that I SHOULD HAVE BEEN ASKED if I wanted to participate. Papers were signed in my name without my consent and knowledge (until I received the first statement). And what is really urging me to get out of it is the fact that EVERYONE I spoke to from the owner to his wife (HR) to my GM and the Plan Admin is that no one could tell me exactly what this was - Not even the 401k Company that this is through - They all passed the buck!!!

I've already been a victim of ID theft, check my credit report once a year and do not give out personal info. I keep track of my hours, make copies of my time card, keep every piece of paperwork they give me, and keep copies of paperwork I give them for days off and I check my personnel file every 6 mo. When someone does something without my consent or knowledge and doesn't give me a choice as to whether I want MY NAME attached to this kind of program, yeah I get a little bit pi$$ed. Wouldn't you?

What I need to know is what I can say or do to get them to close the account. I don't want it, never did, and never will.

If they don't comply, who do I talk to?

 

[cbg]

They will not comply, and I'll tell you why not.

Federal law prohibits them from closing out your account in the way you wish.

FYI, it IS LEGAL for them to have their 401k set up so that if you don't actively tell them that you don't wish to participate, you are automatically enrolled. I'll wager that you received paperwork either when you were first hired or when you first became eligible that told you that UNLESS you signed a waiver (which would have been provided) you AUTOMATICALLY would have been enrolled. That is perfectly legal.

What would not be legal is for them to close your account. Once an account is opened, they MAY NOT LEGALLY close it while you are still an employee of the company. The ONLY way they can legally close the account and return the money in it to you, is if you quit/are terminated or reach retirement age.

The reason they are ignoring you is that they may not legally do what you want.

 

[I AM ALWAYS LIABLE]

Well then, if that's the case, then screw them, screw the government, screw you, and screw the World. I've HAD IT with all the freakin' rules, regulations and laws!

On Monday morning when I get into work, I'm goin' "Postal"!


faux November Rain

 

[HomeGuru]

Purple rain

 

[November Rain]

You've lost the wager; I NEVER received ANY kind of paperwork. Never given a waiver form or any kind of enrollment papers, packet, booklet, forms, pamphlet, insert or notice. They didn't ask if I wanted any money pulled out of my check to go to the 401k account.

I was told that one year after I started I would be eligible to sign-up for the 401k. (January 2003), When January came, I was told nothing. Which I was fine with because I stated to HR that I did not want it - figuring they listened, I didn't pursue it any longer - until I received my first statement.

When I received the first statement, I got the run-a-round as to how I was signed up, and what the account actually was. I was told it was a retirement plan, a profit sharing plan and a 'regular' 401k plan..

The 401k Company told me I had to fill out paperwork to have the employer close the account - So I am assuming that the account can be closed - especially if the 401k Co. is stating this to me.

No one has fulfilled the request of giving me paperwork or booklet as far as what the plan is, benefits, choices, etc. It's as though they are working on a highly classified project or something.

The 401k co. stated to me that they have paperwork signed BY ME that opened up the account FOR ME, but could not give me copies, as I had to go through the employer - who is ignoring the request of giving me copies of said paperwork I allegedly signed.

~~~~~~~~~~~~~~~~~~~~~~~~~​

So, PLEASE, I need to know what I can say/do to get them to close the account. Who do I talk to get the employer to comply with my request? Department of Labor? Industrial Relations Board? Atty General? FTC? BBB? BBC? FBI? CIA?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~​

 

[Beth3]

"FREE Money.. ha ha ha.. that's funny!! They keep the money when they fire employees (or when they quit)!! These people think that they can't win a case against the company to get the money they and this employer have put in. Ive spoken to a few of the past employees about their 401k "money"."
Ever heard of a vesting schedule? Under recent federal legislation (EGTRRA), there are only three different vesting schedules allowed, the least generous of which calls for vesting of @ 20% per year of employment, with an employee being fully vested at 6 years. Yes, if an employee leaves their employment prior to 6 years, they will forfeit SOME of the 401(k) money but that is the way it works most places.

As long as you are not being required to make a contribution to the 401(k) Plan, you have absolutely nothing to lose by allowing your employer to do so. If you leave and receive a distribution, you can roll it into an IRA and avoid penalties and tax consequences.

I agree the 401(k) Plan does not appear to be being communicated as it should but given the financial straights you describe, sounds like the employer may be focused on other issues.

In any event, you are clearly irrational on this topic so I'm sure any further response from anyone here will be futile.

 

[November Rain]

In any event, you are clearly irrational on this topic so I'm sure any further response from anyone here will be futile.

No, actually, I have been rather nice about the whole incident. All I needed to know is what I can say or do to get them to close the account (and maybe another possibility as what to do with the money to get out of the 401k), but no one here seems to understand that or want to help....

I didn't want 'responses', I wanted "advice" as to what I can do. It's obvious I'm not going to get anyone here who knows, so no further responses are necessary.

AND for those who want to know; I did speak with the plan administrator today= She is going to close the account. I'll be getting copies of all the paperwork and a letter stating it has been closed. AND I did remain in her office until the task was completed.

So, whether this sounds irate or not; Thanks to all for whatever 'information' was given. It was useless. Although I did like IAAL's comments - they did make me chuckle a little.

 

[cbg]

"The 401k Company told me I had to fill out paperwork to have the employer close the account - So I am assuming that the account can be closed - especially if the 401k Co. is stating this to me. "

Yes, the 401k account can be closed - but ONLY in the circumstances I described in my earlier post. The ONLY legal way your employer can close the account is if you leave their employ or reach the age of 59 1/2.

An illegal distribution can result in the plan's authorization letter being revoked, which would mean that the employer would no longer be permitted to offer a 401k plan as a benefit to its employees.

I will not respond to any further harangues like the one above.

Edited to include the following, since we were posting at the same time:

So you've convinced your employer to violate the law and put the entire plan in jeopardy. Hope you're proud of yourself.

 

[I AM ALWAYS LIABLE]

Although I did like IAAL's comments - they did make me chuckle a little.

My response:

Well, thank you. I try to please and be entertaining. It keeps readers reading. But, I think even you have to admit that you sound like a whiney-backwoods-redneck-trailer-trash-bitch.

IAAL

 

[November Rain]

As long as I got what I wanted. Persistence pays off

 

[I AM ALWAYS LIABLE]

As long as I got what I wanted. Persistence pays off

My response:

No, being a whiney-backwoods-redneck-trailer-trash-bitch is what pays off.

And because of that, don't be surprised if you get canned in the near future.

IAAL

 

[November Rain]

Say what you will, I came here for information and received a bunch of $hit from a bunch of people who think they know it all - and obviously don't.

IAAL, I think you came from a trailer trash upbringing and that is why you continue to use it in your posts. . . What's the matter big guy? Was it that traumatic?

"Hi! I'm IAAL, I'm not a real attorney, but I do play one on the Net"

There are plenty of Jobs out there in my field. I'm one year away from my Masters then I'm outta here, starting my own business. So, until then, if I do get 'canned', my employer will need to have a very good reason. I've got atty Steve P. Cohn (San Jose) (Which is who I went to for information)

I've been wasting my time with you wanna be's - See ya!