[cferr]

I left a company a year ago. Tried to cash out 401k, and was told by law I had to waite one year. I was able to claim some of the money on hardship. Now one year later, and after losing some of the money to stocks, I'm being told I have to waite another 6 months. This is the time of the companies anniversary date with the 401k. If this were right, I would think they would have told me this when I was arguing over cashing out earlier. I know that there are some companies that say you have to waite till anniversary date, but is that absolute? Is that a law or can they give cash it out if they wanted to? I live in Louisiana if that helps. Thanks

[fredg]

HI,
Have you called the Plan Administrator with your old company?
If the old company turned over the 401k to you, in your name, you should be able to call the Cust Service Rep for the 401k, request a lump-sum withdrawel form, fill it out, and mail it back in. Normally, it takes fro 15 to 30 days to take out all taxes, etc, and mail you the money.
If your 401k plan is still in your old company's name, then you have to go through the Plan Administrator. What you are saying is not normal procedure.
Your old company might have some rules of their own, of which I am not aware. I am not professional in this area; just a 64 yrs old man, who has had experience with his own 401k, now rolled-over to an IRA, with much easier access, and no "management fees" of 2 1/2 % per year!
I do wish you the best, and good luck.

[cferr]

Thanks for the response. It started like this. About 3 weeks before my year waite was up, I call my admin at old job to get paperwork rolling. I left job July 09,05 after 8 years. She said she had to call the 401k company and called me right back saying that they said I had to waite till the companies anniversary date, which is Jan. My problem is with them making me waite this whole year and then all of a sudden, telling me I have to waite another 6 months. I haven't called to talk to 401K company(Flowers and Associates) yet. I wanted to try and find some info out first. If I don't know what rights I or they have, then I would have to believe whatever they tell me.

[Fr_Chuck]

Hello, your old employer has nothing to do with it ( period)

Once you leave the employer you go into a direct contract with the Investment company that handles the 401 K.

You are bound only by the rules in your written 401 K contract that you would have received when you started the plan.

Your personel, HR or other management people at your old company could merely be mis-informed, or for some reason giving you incorrect information on purpose. ( jerking your chain is my professional term for it)

But once you leave your other company normally you are allowed to get the money out so you can roll it over if you wish.

So call the investment company, only they have the truth, calling your old employer was the last person to call on it.

[cferr]

I agree that I shouldn't have to go through old employer. But I was able to claim some of the money on hardship about 3 months after leaving, and everything had to go through old employer. 401k company wouldn't even hardly talk to me on phone. They said I had to contact old Admin. If I had wanted to rollover the money, they would have released already. I want the cash. I know the consequences of cashing it out.