Company refuses to rollover 401k

[owlscreech]

I've worked at my Washington company for nearly six years, and have participated in their non-matched 401k for three years. Yesterday I asked to rollover my abysmally performing 401k into an IRA at a different investor and my company refused, saying:
-I had to quit or be fired to access my 401k.
-Even if I died, they were under no obligation to pay my beneficiaries.
-If I insisted on rolling over the 401k I would be fired.

This is my money; are they joking or playing with fire?
Rex (asking for Penny)

 

[ShyCat]

They are probably neither joking nor playing with fire. They are most likely following their plan's rules. A plan does not have to allow an 'in-service' withdrawal. Get a copy of your plan's Summary Plan Description (SPD) and read it.

 

[ShyCat]

I just noticed that part about not paying your beneficiaries if you die. Now, THAT is bogus.

Perhaps someone has misunderstood something. There are beneficiary rules, one being that a spouse can not be dis-inherited from a 401(k) without a signed and notarized waiver. If there's no waiver, a spouse will inherit no matter what your beneficiary form says.