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CT 401K Money Trapped Employment Law

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InLimbo999

Junior Member
What is the name of your state? Connecticut

Our employer is switching over 401K plans to another vendor. The employees were promised that our funds would be moved after 2 months. During the 2 month period we could not reallocate assets in the funds.

The party who manages one fund under contract to the previous vendor is claiming they cannot liquidate this corporate paper fund fast enough to fund withdrawals. Claim they don't want to pay for early redemption fees.

I have 100% in this fund-about 300K-, which I elected to use because I did not want money in more volatile investments for the 2 month period I could not control the money.

Is my employer on the hook for the 300K if I choose to stop participating in my employer's 401K and liquidate and roll over to my own retirement fund such as an IRA?

If he is on the hook, should I give the company owner a choice to provide my funds or sign a letter personally guaranteeing them.

Ok, let me start over, what questions should I be asking?

That's the bull**** we get...everything is fine everything is ok, don't worry, but the owner will not step up to the plate and offer a guarantee.

The 401K is valuated by an independent CPA every year. But no one as far as I know has certified to me that the corporate paper fund is sound. I was told by the owner that
the corporate paper fund's insurer is the one blocking the transfer of funds as well, as they don't want to be on the hook for early redemption of the paper.
 



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