[DAWNMHERNANDEZ]

I have been problems getting my 401k. I signed a paper stating that I would be OK with them penalizing me 20% months ago, then verbally I was told it was not 20 but 28% plus an additional 10% for god knows what plus since stocks were down more than 10%, they would have to figure out just how much and in addition, deduct that also. I asked for the name and phone number of the company that I am supposed to get my statements from and was told that they do not have to give that to me because the policy is so old and the owner of the company is the "grandfather" on the plan, they do not need to send me statements or give me ANY information on that company. They are "aware" that the laws have changed and they will need to give people that information in the future, BUT they conveniently do not have to change theirs or release that information until 2010. So basically I have to trust them on telling me how much money I put in for the last couple years and how much they are supposed to take out including the 28% + the 10% + the additional ?% for the stock market being down. That does not seem legal to me and I know I am being robbed and lied to so I need to know what steps I can take to get my money, report the employer, etc.

[ebaines]

Let's clear up what all these payments are:

1. First, the plan administartor should withhold 20% for income taxes. That's the 20% you apparently signed a paper about.

2. Next April when you file your 2009 taxes you will have to include the distribution in your income. Depending on your particular circumstances it may be that the 20% withheld is not adequate to cover the actual income taxes you will owe. For example, if you are in the 28% income tax bracket you will end up owing more taxes than was withheld.

3. If you live in a state (and/or or city) with income taxes you will also have to pay them tax on the distribution as well.

4. You will also have to pay the IRS a 10% penalty for eary withdrawal (assuming you are under 59-1/2 years of age, and don't qualify for an exception). This amount is not withheld from the distribution, but rather must be included by you when you file your 1040 next year.

The value of your account fluctuates daily with the ups and downs of the market, so the amount that you will actually get if you liquidate the entire account can only be determined on the date the liquidation occurs. It's not that "they" are "deducting" amounts with the changes in the market - it's that the value of the underlying investments changes daily. If you want to minimize this fluctuation you should be able to transfer your investments to a cash fund. Check with your plan plan administrator as to how to do that.

I can't tell from your post who the "they" is that you refer to. Are you talking to the plan administrator, or are you talking with somebody in HR at your old place of employment? Do you know who the plan administrator is? Should be a bank, a mutual fund company, or insurance company.

[DAWNMHERNANDEZ]

Ebanies or anyone else. PLEASE HELP...

The CFO told me they are withholding the additional 10% penalty, not that I have to claim it on my taxed. Also, they told me they are deducting the % the stock market went down from my check (being that it went down more than 10%). I have been talking to the CFO because I cannot get any information on the plan holder. I cannot even tell you for sure how much total I have in because I never got a statement from them which I just found out I should have been getting periodically. Is it legal for them to not give me the planholder information, name, phone number, etc. Do I have to trust them in what they are telling me I put in over the years and what whould be deducted? I have been trying to get my money since September and was told that it won't be for another couple of months. Something does not seem eight because they are withholding the planholder from me and stalling. I worked for this company and the owner is not very "legit" in anything he does. One of the employees told me last week that "mine is not the only check he is holding". I don't believe he even has the money in the appropriate place to give to me. I strongly feel that he used it for inappropriate reasons and am trying to stall me. Do you or anyone else have any suggestions on how I can handle this?