| 401k cash out after 60 days? |
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damooster
New Member
Cash: $ 0.85
Posts: 4
Joined: 01 Mar 2013
Location: Vietnam
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| 401k cash out after 60 days? |
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Hello everyone,
To make a long story short, I requested a 401k cash out when I left my previous employer in September. I know, it wasn't the best move, but I had my reasons.
Anyways, when I left my employer, they (the CFO and plan administrator) said that I could sign a waiver (waiving my earnings since previous valuation) and receive my funds within 30 days. She even said she would direct deposit them for me because I was moving to Vietnam (part of the reason why I cashed out). After 30 days (when I was already in Vietnam), she told me that the third party administrator denied my 401k request. She said I had to wait until the end of the next valuation, which was December 31, 2012. I said fine, I can't fight it, so I waited until the end of the valuation period.
Fast forward to today: I still have not received my cash out. They say that they just finished the valuation and requested the funds be sent to my former employer. So I was just trying to find out what rights I had, and I found this from the Department of Labor:
quote:
ERISA provides specific rules governing when you may or must begin receiving your pension benefits. First, ERISA sets the latest date by which the plan must permit you to begin receiving your benefit. Under this rule, payment must begin by the 60th day after the end of the plan year in which the latest of the following events occur:
(1) you reach age 65 or, if earlier, the normal retirement age specified by your plan;
(2) the end of the 10th year after you began participation in the plan ends; or
(3) you terminate your service with the employer.
I get two interpretations from this. The first one is that I should receive the distribution 60 days after I quit my job.
The second is that I have to wait 60 days from the retirement age (because of the statement "the latest of the following events occur").
So which is right? I just hit 60 days from the end of the valuation period (it's been over 60 days since I left my employer). Should I have received my cash out by now?
Thank you for any help you can provide.
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Fri Mar 01, 2013 2:37 pm |
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damooster
New Member
Cash: $ 0.85
Posts: 4
Joined: 01 Mar 2013
Location: Vietnam
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The plan administrator is the CFO...the same one that gave me the impression that I would receive my cash out in 30 days. I've always suspected that she was the ultimate decision maker but I can't prove it. Was she the decision maker (on whether or not I could receive the cash out after 39 days)?
Thanks for your help so far.
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Fri Mar 01, 2013 4:20 pm |
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damooster
New Member
Cash: $ 0.85
Posts: 4
Joined: 01 Mar 2013
Location: Vietnam
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Sorry Tim: as you can see, I am clueless about this whole thing.
The company handling the funds is Schwab. The third party administrator is called Retirement Benefit Solutions. I correspond with the CFO of my former employer. She's the one that told me a few days ago that she requested funds from Schwab, but RBS is the entity that did the valuation.
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Fri Mar 01, 2013 4:41 pm |
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damooster
New Member
Cash: $ 0.85
Posts: 4
Joined: 01 Mar 2013
Location: Vietnam
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Thank you for everything Tim. My former employer is a small company and the CFO handles the 401k stuff.
Am I correct in assuming that she's the one that denied my request for a cash out before the valuation (and not the third party administrator)?
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Sat Mar 02, 2013 7:31 am |
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