Employer termination of 401K Plan

[cjcos]

My company is being bought by another company. Our main office is in Austin, TX, and my group (engineering) is located in Colo Springs, CO. Every employee was notified by mail that the Plan Administrator plans to terminate the 401(k) Profit Sharing Plan in a standard termination effective October 31, 2001. We were also told to fill out a Distribution Election Form with instructions regarding the distribution, and return it by October 31, 2001. The letter states the law requires them to provide written notice of the proposed termination to the employees.
My questions are: 1) If the Plan is terminating on 10/31/01, do we legally have to return the Distribution Election Form by 10/31/01? and 2) Are we not supposed to have at least 30 days after the termination to decide the terms of the distribution? (Are there any laws which state this, and if so, what are they?)

 

[ALawyer]

NORMALLY the old plan provides some leeway. And you'd normally roll over to the NEW plan of the NEW (successor) employer. If the new employer does not have one, then to a rollover IRA.

I don't know what the law is but decency says they shou;ld allow you time. Call the US Department of Labor or the IRS for information. Beleive it or not, this time the Government may help....