Quit work in Nov 04. Waited for employer to give Profit Sharing contribution, and then waited for plan to be valued. Finally, in May 06, I received my $5,000 distribution and rolled it into an IRA.
Now 6 months later, I received a letter from my previous employer stating they made an error in March 05 or $450. They are demanding I repay the money PLUS about $70 in interest.
I do not want to repay, and the letter threatened that they will file papers to compel me to repay.
It was their mistake from over a year ago, and they paid my distribution. Must I repay what they say I owe?
Thank you!
2006-11-20 06:32:33 · 3 answers · asked by ThaneTheBrain 2 in Business & Finance ➔ Personal Finance
I think I would try to hang tough and make it difficult for them, but I think you will probably have to pay. In fact you are probably not the only person that was over-paid.
However, in your negotiations/discussions with them, make sure that they re-pay YOU for the 10% penalty and tax that will end up on you tax return for the year because of the pre-mature withdrawal of the funds to pay them back.
2006-11-20 06:52:08 · answer #1 · answered by Ovrtaxed 4 · 0⤊ 0⤋
You will probably have to pay the original error amount. Get a an attorney to help you with the interest. It was their mistake, don't let them bully you for the difference.
2006-11-20 06:41:49 · answer #2 · answered by invisibleone 3 · 0⤊ 0⤋
I would ask for it to be recalculated. I would also not even pretend their claim of interest is valid. I would make sure they have correctly calculated this time (go to the office and make them work it out in front of you) and then pay if you still owe, but not any interest for their error. That's ridiculous.
2006-11-20 06:55:11 · answer #3 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋