Investment payback

[foge1]

State of Georgia

Five years ago I cashed out my Retirement Income Plan from a former employer to help fund my start up business. The cash out was included on income tax filling and my accountant handled everything. I just received a letter from the administrator of the former company's benefits plan stating that
the calculation for payout used an incorrect rate back in 2006. They state I need to pay them back the overpaid money. Am I legally obligated to payback
the money?

foge1

 

[Zigner]

Most likely yes. Why wouldn't you be?

 

[tranquility]

While I agree with Zigner, I certainly wouldn't make it easy on the company.

I'd first ask for the calculation worksheet which was preformed on the original distribution and then ask for this revised calculation worksheet.

Compare the two and find the purported error. THEN you can try to determine if you have to pay anything "back".

Info edit:
The Statute of Limitations may apply too. (Although I suspect this would be under a written contract and have the 6 year SOL not run as yet.)

 

[HomeGuru]

While I agree with Zigner, I certainly wouldn't make it easy on the company.

I'd first ask for the calculation worksheet which was preformed on the original distribution and then ask for this revised calculation worksheet.

Compare the two and find the purported error. THEN you can try to determine if you have to pay anything "back".

**A: I agree. The OP should formally request all supporting and backup info and even have a CPA review.

 

[Zigner]

**A: I agree. The OP should formally request all supporting and backup info and even have a CPA review.

Third-ed

 

[foge1]

Thanks for the response. I will ask for the worksheet.

 

[tranquility]

Worksheet*S*. If you don't have them both, you will have to research a lot of law to know if their calculations were correct. If you can find a single difference, you then know what point they are making.