What is the name of your state? TX
I recently received a letter from a previous custodian that an error was made on their behalf when they rolled over my 401k to my new custodian. The rollover took place over a year ago when I left my employer and they just now realized that they overpaid me by over $2k and now they want me to pay them back or they will send it to collections.
Their response to this error is the following: “At the time of your termination, we did not have accurate vesting service in our system. During an audit it was discovered the vesting should have been 60% rather than 80%." Also, they state the error was made back in 2000 and I left my employer in 2005.
From what I can see, it appears to be an error made between the 2 custodians, my previous employer and the custodian at the time and now they want me to pay for it.
Based on the statements I received from my previous employer, it clearly states the amount I was entitled to receive. The letter the custodian sent me does not prove anything but only explains the vesting schedule.
My questions are:
1. Should I be held responsible for their error?
2. Is there a statue of limitations since this error was made back in 2000 and it was just discovered in 2006?
3. Is it lawful to send this to collections when this was not a debt?
4. Will I need to pay them back this money when I don't have it?
5. As my custodian, they had a fiduciary responsibility to manage my funds so should they be held responsible for their own error?What is the name of your state?
I recently received a letter from a previous custodian that an error was made on their behalf when they rolled over my 401k to my new custodian. The rollover took place over a year ago when I left my employer and they just now realized that they overpaid me by over $2k and now they want me to pay them back or they will send it to collections.
Their response to this error is the following: “At the time of your termination, we did not have accurate vesting service in our system. During an audit it was discovered the vesting should have been 60% rather than 80%." Also, they state the error was made back in 2000 and I left my employer in 2005.
From what I can see, it appears to be an error made between the 2 custodians, my previous employer and the custodian at the time and now they want me to pay for it.
Based on the statements I received from my previous employer, it clearly states the amount I was entitled to receive. The letter the custodian sent me does not prove anything but only explains the vesting schedule.
My questions are:
1. Should I be held responsible for their error?
2. Is there a statue of limitations since this error was made back in 2000 and it was just discovered in 2006?
3. Is it lawful to send this to collections when this was not a debt?
4. Will I need to pay them back this money when I don't have it?
5. As my custodian, they had a fiduciary responsibility to manage my funds so should they be held responsible for their own error?What is the name of your state?