Illegal 401k handling [MN]?

[kklobe]

What is the name of your state?My former employer started a 401k plan for which paycheck deductions began on 1/15/05. The company essentially dissolved on 3/15/05, and it was discovered after talking with the 401k administrator that, although deductions were made from all of our paychecks, no money was ever transferred to the 401k - all our balances are $0. The former owner of the company will not return any of our calls or those from the 401k administrator. What is the legality of this, and what are the best steps we can take to get our money? Do we go after the owner, or is the 401k company in any way liable?

 

[Beth3]

No, the 401(k) investment company is not liable - they never received any funds. It was entirely the employer's responsibility to forward those to the investment firm. Diverting employees' 401(k) contributions into the assets of the company is a major violation of federal law. Contact the federal Department of Labor immediately to file a complaint: 202-693-4650.

Your former boss may be subject to both civil and criminal sanctions.

 

[cbg]

Agree with Beth. This is NOT legal and your boss is potentially in very big trouble - I mean the kind of trouble you go to jail for.

Do not pass go; do not collect $200. Call the Feds without delay.