People that participate in a 401K have any protection.?

Question

Any protection against company's that sponcer the 401 plans that they can make up any kind of rules for the participants.Example:The company tells me because of the rules written in the company handbook,that i canot roll my 401 out for 21 months!Is there nobody out there that protetects their 401 participants?Does anyone know?

Answer 1

Yes, there are ERISA laws in place that regulate what terms can and can't be put into a retirement plan. Ask to see your plan documents. You may also want to talk to the investment firm that holds the accounts. They will likely know the rules.

Note that if you are still with the same employer, they CAN prohibit in-service rollovers.

If they freeze your access to management of the investments, that may be another problem requiring an attorney.

Answer 2

Do you ask this because you are leaving the company? If you are leaving then you should be able to roll over your 401 k. I would also ask for a handbook that explains your companys 401 k to see if they are telling you the truth. Talk to the highest person in that company. Good luck

Answer 3

I do agree with everyone opinion please refer to your 401K rules & regulations. I had my 401K with my previous employer and the account was managed by Prudential.We could take the 401K after you leave but you would need to roll it over into an IRA or with the new 401K account with a new employer.

Please make sure that if you have any retirement account with your employer make sure you roll that money over into an IRA.

Ashish