Termination of 401(k) Plan

[tall_lu]

What is the name of your state? New York

I took a loan from my 401(k) plan in April and have been seeing weekly payroll deductions to payback my loan. I did not check my check for the last two weeks and noticed that there was no deduction on this week's check. I inquired to the plan administrator and she told me that my employer terminated the 401(k) plan 3 weeks ago and was supposed to tell us. Isnt it against the law to terminate a plan without notifying the emplyees? It has been 21 days since my emplyer did this and we found out underhandedly. Are there any ramifications under the ERISA laws towards my boss? Also, doesnt this mean I have to pay back my loan in full now? Since I refuse to do this, isnt my boss resposible for this payment to me since there is no longer a plan and the borrowed money is mine? Please advise.

 

[Beth3]

An employer terminating their 401(k) Plan is pretty uncommon, consequently I doubt any of the regular responders here can answer your question. If that's the case, then give the federal Department of Labor a call. They'll be able to advise you.

 

[cbg]

I know someone who can probably answer the question; however I won't be able to reach her for a few days. Check back on Monday.