Legal Question in Investment Law in California
is it legal for an employer to keep the 401 funds and not release them when requested?
Asked on 1/14/12, 6:11 pm
1 Answer from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Administering a 401(k) plan means following many complex rules, some of which is or should be in the hands of a third-party administrator, and some of which is left up to the employer, or requires the employer's approval. Therefore, an outside attorney cannot give an answer to a one-line question on this subject. There would be some circumstances under which a release would be proper, and others in which is clearly is not. I would turn first to the appointed third-party administrator for an explanation.
Answered on 1/15/12, 10:33 am
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