plan administrator wants $ to distribute 401K?

[cat13]

Is it legal for my former office manager to demand that I pay her for her to do the paperwork required for my 401K funds to be rolled over into a new employer's 401K? She is claiming that the 3rd party administrator is wanting a fee to complete the transaction. I don't believe that - I think she's just holding a grude against me, as I know she intensly dislikes my leaving the firm. How can it be legal to charge a person a fee for them to receive their own money? If it matters, I'm a Utah resident.

 

[cbg]

What kind of fee are we talking about? And what does the plan document say?

 

[cat13]

the fee is only $50. I don't believe I have ever received any information re. the 3rd party administrator, who supposedly wants the money. Until today, I didn't even know there was one.

 

[cbg]

Well, actually...

I wasn't asking for information about the administrator. I was asking what the 401k plan document says about distributions and whether it mentions the fee.

Sorry if I wasn't clear.

You probably were given a copy of the Summary Plan Description at the time you joined the plan. If not, or if you don't have it now, you are entitled to one, by law, on request. You'll need to ask HR for it.