I have a retirement fund that I paid into at a different place of employment than where I am now. I would like to withdraw the money from this fund and my former employer is telling me that I am unable to. I did pay into this account and need to know if this is legal, and what steps I need to take to obtain these funds. I reside in the state of Georgia if there are any laws that are specific to this area that would also be a great help.

Yes it may be legal depending on the type of retirement account. Retirement accounts are for retirement, there are constraints against withdrawals prior to retirement.

Without knowing the type of account or the provisions in that company's plan rules, its hard to answer further.

I did receive your answer and am very appreciative. I am going to look into any constraints, and if I need to I am going to let you know if there are and maybe you can help me find a way around them, if possible.

Thanks!
~Noelle

nnester - if this is a 401(k) or 403(b) account that you are talking about - the plan is NOT required to let you make a withdrawal prior to age 59-1/2 UNLESS you are either (a) rolling the money to another plan (such as an IRA or a 401(k) plan at your new lace of work), or (b) using the money for one of the "hardship" purposes as defined by tax law. The recognized "hardships" for which the IRS requires plans to allow participants to make withdrawals prior to age 59-1/2 are:

1. Expenses for medical care previously incurred by the employee, the employee's spouse, or any dependents of the employee or necessary for these persons to obtain medical care;
2. Costs directly related to the purchase of a principal residence for the employee (excluding mortgage payments);
3. Payment of tuition, related educational fees, and room and board expenses, for the next 12 months of postsecondary education for the employee, or the employee's spouse, children, or dependents;
4. Payments necessary to prevent the eviction of the employee from the employee's principal residence or foreclosure on the mortgage on that residence;
5. Funeral expenses; or
6. Certain expenses relating to the repair of damage to the employee's principal residence.

Note that even if the withdrawal is to be used for one of these purposes you wlll still have to pay both income tax (federal as well as state/local, depending on where you live) PLUS the 10% early withdrawal penalty.