It was my understanding that since my previous employer contributed into a previous employee's 401k that they should do the same for me. They withhold state, federal, medical insurance, etc. from my serverence check but refuse to allow me to contribute to my own 401k therefore they also do not contribute to my 401k. I have not been sent my 401k paperwork to be able to roll it into an IRA so they are basically holding it hostage. My serverence lasts for one year and although I have asked them to make the contributions I am ignored. Are they responsbile for making contributions to my 401k still while I'm on severence? Why can't I make contributions? And if neither can be done, why haven't they sent me the information to roll my 401k into an IRA?

1) Membership in a 401(k) is a benefit for employees. Since your employment ended you can no longer contribute. Severance pay is not paid to employees but former employees.

2) Many plans do not require that close your account after terminating employment. You can leave the account open until you are ready to start withdrawing for retirement. Therefore there is no requirement that you be sent paperwork to rollover the balance. If you want to roll it over, then you need to contact the plan administrators and request a distribution. You should do a direct rollover so you should decide where you want to IRA to be before you submit the paperwork.