401K still being held? Unsure how long

[questionforall]

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

I have not worked for my previous employer for almost 2 years. My 401 K was still being held in the same financial agency for that time.
About 10 months ago the previous company was sold. All the 401K holdings were frozen until the sale was finalized (I think) We were all instructed at that time to designate where the money should go, ie: new employer plan, Bank IRA etc,....I did this.

U have called twice to find out why I have not received my check via mail (I am putting it into an IRA) and have only recieved the answer that it is still in holding by the Government?

Can anyone tell me the process when one company is sold to anouther and what happens to the 401K plans. And if I am unable to retrive it is it still being invested and utilized? I was told that the valu of the 401K could change because it is still active.

Forgive me for my ignorance, I only know basics about 401k plans but to me it seems like an aweful long time to hold ones money, and I am even more ervous that what I did have is being wasted down while I am unable to retrive it and put it safely into an IRA.

I hope my question makes sense.

 

[ShyCat]

Be patient, it takes a long time. It took over 18 months before we were allowed to move our 401(k)s the first time my employer was bought by another company. Your money is invested in whatever manner you indicated, with the same gains or losses as would occur if you had it invested in the same funds in an IRA (not accounting for any differences in fees/expense ratios). You just cannot add or withdraw any of the money until the plan is officially terminated.

 

[questionforall]

Feeling safer

That helps. It's nice to know this is a "normal" wait time.
Thank you so much.

 

[Beth3]

Did you complete and submit a withdrawal form after you left? If so, I can't think of any valid reason why the withdrawal was not processed for 14 months.

Regarding the sale of the company, the 401(k) monies aren't being held by the government. I expect no withdrawals are being processed until an audit of the Plan is completed by the acquiring organization. They'll want to make sure that everything is at it should be and that all employee contributions were allocated properly, all employer contributions were made and allocated, etc. The acquiring company won't want to incur any liability if something is amiss or any errors were made - which does happen.

I don't see why this would take ten months though. Two or three months perhaps. If I were you, I'd contact the federal Department of Labor and see what they have to say.

 

[ShyCat]

A 401(k) plan cannot be terminated until the IRS issues some kind of "letter". If it's a large plan, it will take months for everything to be completed. The IRS moves at their own pace and I doubt the DOL has anything to say about it.