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SEP IRA/401(K) Notification/

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Dinkerbelly

Junior Member
BACKGROUND:

Recently terminated after six years of employement from small company (>25 employees) in VA which had been in business about 10 years. Owner promised small starting salary would be offset by benefits, specifically 15% SEP IRA contribution. Same SEP IRA contribution made every year until 2002 (just before I became elligible). Owner apparently did something fishy w/changing fiscal year costing(?) vested employees six months of benefits (again, before I was elligible, but others felt injured).

Mid. July 2003 - given employee handbook detailing benefits specifically SEP IRA (no specific contribution amount notated). 15% assumed by older employees because it had always been, was promised from hire date, etc. 15% reasonably surmised by statement that benefits cost employer additional 25% of salary ($60/mo. parking, up to $100/mo. ins. premium, three weeks leave + 15% = about 25%)

Early August 2003 - Presented with "beefed up" non-compete and employment agreement.

Mid August 2003 - Owner calls meeting to announce that no contribution would be made due to lack of profits. Owner wrote self $75K check that same day.

Exit Interview 9/28/04 - Inquired about retirement benefits due to have been settled July 2004. Informed plan had changed to 401K, then hurried out the door.

QUESTIONS:
Does the promise of 15% and the handbook alluding to same constitute some sort of contract, especially considering the timing of non-compete/announcment? And, if it had not been promised/expected, why call meeting? No law mandates payment into SEP.

Can I find out if owner invested 75K in company sponsored plan? If so, do we have some recourse for recovery?

401K... when should I have been given notice of change? Have drafted letter requesting any company sponsored retirement plans for 2002-2005. What next?

Also, fired two days short of 92 day quarter. Team leader announced a month earlier that we were 90% of goal and our 500 quarterly bonus checks were "as good as written". Handbook states all accrued benefits shall be paid, but no check. Suggestions?

Sorry for such a long post and thanks for any advice!!
 



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