Legal Question in Employment Law in California

The company I work changed 401K providers about a year ago. I was trying to cash out some of my vested amount for some unforeseen bills. However, I am being told that when my company signed on with the new 401K provider, they (my company) signed a clause that states that funds can not be cashed out and the only way to get them is by termination of employment.

Since I was the one contributing to this plan and it is 100% vested, is it legal that I do not have the ability to cash out some (or all) of this at my discretion?

I was able to do this with the last 401K provider.


Asked on 3/25/10, 10:59 am

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Ask for the summary plan description, or any other document that states you cannot withdraw your money while employed. If they refuse to provide you with documentation, contact the U.S. Dept. of Labor (not the California Labor Commissioner).

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Answered on 3/30/10, 11:29 am


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