| 401 K rollover & cash out |
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gzink
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 30 Jun 2005
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| 401 K rollover & cash out |
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Can anyone tell me if the following is legal? In Aug of 2002 I quit my job at that time I had a 401K with Company A. I was told I could roll it over, cash it out or just leave it where it was. I left it, I have now decided that I want to remove the money. The 401K is handled by Merrill Lynch. After contacting Merrill Lynch I was told that Company A had frozen my account and I would need to contact them. After speaking to Company A I was told that Company A had sold to another company at the beginning of the year and that Company A's lawyers had advised them to freeze all 401K's until the IRS had given a consent. That will not be until at least the end of Sept. Is this legal? I am no longer an employee of Company A, my account was listed as 100% vested, employee terminated. Why is the money I put into the 401K an asset of Company A? Any help would be greatly appreceited.
Thank you
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Thu Jun 30, 2005 7:54 pm |
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joseanes
Full Member
Cash: $ 10.20
Posts: 76
Joined: 30 Aug 2005
Location: Marlborough, MA
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| Re: 401 K rollover & cash out |
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quote:
Originally posted by gzink
Can anyone tell me if the following is legal? In Aug of 2002 I quit my job at that time I had a 401K with Company A. I was told I could roll it over, cash it out or just leave it where it was. I left it, I have now decided that I want to remove the money. The 401K is handled by Merrill Lynch. After contacting Merrill Lynch I was told that Company A had frozen my account and I would need to contact them. After speaking to Company A I was told that Company A had sold to another company at the beginning of the year and that Company A's lawyers had advised them to freeze all 401K's until the IRS had given a consent. That will not be until at least the end of Sept. Is this legal? I am no longer an employee of Company A, my account was listed as 100% vested, employee terminated. Why is the money I put into the 401K an asset of Company A? Any help would be greatly appreceited.
Thank you
It is legal for 401ks to be "blacked out" - no transactions allowed.
One of my 401ks is in such state due to company merger. Will come out of it soon. It is safe, don't worry.
Not an issue, as it is kept invested in the current funds where it was invested (hopefully growing).
However, I must advice against cashing out (unless you are over 60). Roll it over to a Fidelity Simple IRA, or to a Vanguard 500 fund IRA.
-- Jose
http://www.MoneyAndInvesting.net
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Tue Aug 30, 2005 2:09 pm |
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