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    sanfran3's Avatar
    sanfran3 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 18, 2008, 10:43 AM
    401K rollover
    My company has just split off the division I work under and set up a new company with 60% owned by an outside investor and 40% owned by the current company.
    In all other financial areas, I am now no longer an employee of company A, but an employee of company B. Meaning: for company A I have a termination date, I lost all my outstanding stock options, and I received a final pay check.
    However, in regards to the 401K issue, I was told this was a mandatory "roll-over" from Company A 401K to Company B 401K.. therefore leaving me no options that I would have had due to a "termination" situation.. ie: taking the money and placing it in a an account of my preference, whether it be an IRA, etc..
    Is this legal? Do I have any options, and if so, how do I proceed.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jun 18, 2008, 11:14 AM
    Yes it would be legal, so you have no options. If you want to double check contact the IRS.
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