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Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 5, Issue 209 May 9, 2002
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 5, Issue 209 May 9, 2002 |
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 » From: Alameda, CA Dear TaxMama: I requested a 401k disbursement from my former company three months ago. They still haven't provided me with any paperwork and are now directing me to their third-party administrator. Isn't there a legal limit (of three months, for example) on such requests? Is there something I can do to encourage them to get this done? Thanks in advance for your advice. Regards, Hillary  Well Hilary, You should have contacted the administrator in the first place. They’re the ones who issue checks on the account. But, of course, who knew, right? There is a 90-day limit for the plan administrator to let you know if you do or don’t qualify for benefits. It's not an IRS/tax issue. It's an ERISA issue. This area of the law is overseen by the Department of Labor. Their website has an article entitled: Making A Benefits Claim And Filing Suit Under ERISA However, without extensive searching, I can’t find the specifics of how long they can hold your money without releasing it to you, if you simply want a full distribution from your account. But, the specifics should be in your plan document. If you don’t have a copy, ask for a copy of the plan document and read it. It will tell you the plan's rules. When I left my last job, my employer did the same thing to me. And back then, there was no time limit. So, there was nothing I could do. Now, I know there's a limit. But it's not easy to find - without already knowing where to look. (Not really helpful for the public, is it?) Oh, one little trick that might help in the future. If you just ask for a partial distribution (say, 90% of the money in the account), instead of closing out the account, you should get that money in a couple of weeks. Closing the account takes longer because there’s more paperwork involved. Best wishes, Eva Rosenberg Your TaxMama  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2009 - Eva Rosenberg |
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