[emhidalgo57]

I was laid off by AIG in June 2009. Shortly after in August I rolled over what was left of my 401K fund. Now the plan admin sent a letter last week stating I was overpaid by $300.00. I heard that Texas is a right to work' state. It is my understanding in these states once a employer cuts a final check to me it is a done deal. Am I bound by law to return the money? The letter from them does not reference any law to return the money only that they are under law to notify me. Thanks

[ScottGem]

First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

I don't think there is any law making return of a 401k final. I think they can go after you for the $300. At the very least they can adjust the 1099 they sent making you file an amended return.

[ebaines]

Since the letter came from the plan admin it is actually NOT from your employer. Did the letter indicate what the source of the $300 is? Was it an employer's contribution made in error to your 401(k) account? Do you agree that it was an error? If so, then you could just do the "right thing" and send a check for the $300 (I think that would be easier and a lot less messy paperwork-wise than trying to get it out of your new rollover IRA). Or you could wait and see if they ratchet up the threats with subsequent letters.