Legal Question in Investment Law in Ohio
401K withdrawl
My husband, who is 56, was laid off a year as of Nov. 22, 2003. We contacted the 401K plan and they stated that after a year the company can consider you terminated and you can withdrawl your money. We received the papers and returned them on Nov. 24. A week later my husband was told he would be called back to work on Dec. 8. We contacted them on the 5th to see if they had received them and to see if there was a problem. They said they were waiting on the confirmation of his lay off date. They held our papers and today said they won't give us the money because he is back at work and said the IRS wouldn't allow it. Since he wasn't working when we made the request can they still refuse to give us the money? We know we have to pay taxes and a penalty and we are willing to do this.
1 Answer from Attorneys
Re: 401K withdrawl
Your question would require two things to provide you an answer. First, your company's plan documents would have to be reviewed to establish their internal policy. Second, probably two to three hours of legal research would be required to establish the law as it exists with 401(k) plans, especially since many changes in tax law have occurred in Congress over the last two years.
Have you considered a loan against your 401(k) plan if access to funds is what you desire? Most 401(k) plans offer loan provisions where you don't have to pay any penalty or tax.
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