I was at the job for 8 months, got fired because owner changed china game plans. When I rolled over the 401K, they deducted their contribution, claiming I was not vested.
I called up the 401K investment company, they said I am entitled to the full amount. I contacted my former employer but they ignored me.
Who should I complain to get a fair hearing and arbitration?
2007-12-06 23:47:47 · 14 answers · asked by rafflesibmnet 2 in Politics & Government ➔ Law & Ethics
look in the Summary Plan Description that they provided you. The match may be vested or it may not be. If there was a vesting schedule attached to the matching contributions then you were likely not entitled to it. But, many companies do not have a vesting schedule on their match (mine doesn't) and yours could have been one of them. That Summary Plan Description will tell you exactly what you need to know.
If and only if there is no vesting schedule on that match then you should contact the US Department of Labor. Do not do this without verifying the vesting schedule as they won't do anything without that information and YOU are the one who should get it.
2007-12-07 02:19:05 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
It's not uncommon for companies to have this requirement. I've worked for a couple. Is it fair? Perhaps not. Is it legal? If it wasn't, why do so many companies have such a policy? Wouldn't someone have sued and had it declared illegal by now? A lawsuit will cost you more than the match. The best thing to do is to move on.
2016-05-21 23:52:07 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The investment company may be incorrect - if you were not fully vested then you are only entitled to your vested amount. Usually the employer contribution is only yours after 100% vested.
2007-12-06 23:52:46 · answer #3 · answered by Just aasking 3 · 0⤊ 1⤋
Yes it is legal if there is a vesting period. Usually, employer matches to 401Ks have a vesting period. You have to work there a certain length of time for it to become yours to keep.
Check your 401K contract again to see if that is the case.
2007-12-06 23:51:29 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Yes, it is legal for them to do so. If you were there only 8 months, you were not vested.
Whoever you talked to at the 401K company doesn't know what they were talking about, obviously.
2007-12-07 00:05:28 · answer #5 · answered by Ricky T 6 · 0⤊ 1⤋
less than a year = absolutely NO vesting not even the 20%. A full year of employment is required for 1 year vesting.
2007-12-07 00:07:04 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Yes. 401K plans are designed with vesting formulae, and if you don't meet the rules...the employer contribution is not yours.
2007-12-07 00:18:07 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Physically go there and schedule meetings. You can't call on the phone about matters like this. You need to physically go talk to someone. Get some paperwork for proof from the investment company and take it to them. If you go in there whining and moaning they're going to tell you the same thing. Go in there with proof, and tell them if they don't make things right, your going to sue. If they refuse, sue them for the portion the took, as well as lawyer fees and any other fees associated with the lawsuit.
Good luck!
2007-12-06 23:52:19 · answer #8 · answered by Anonymous · 0⤊ 2⤋
Contact the administrator of the 401(k) . . . the investment house that manages the account . . . let them know if this is not rectified within 30 days you will be forced to sue naming the investment house as a co-defendant. Believe me, if you are legally entitled to the money, they'll get it for you. Make sure you notify a manager . . . not one of those general information phone clerks.
2007-12-06 23:52:10 · answer #9 · answered by CHARITY G 7 · 0⤊ 2⤋
Yes it's legal if you were not vested! They may contribute from the onset, and withdraw it if you do not vest! Sorry!
2007-12-06 23:57:15 · answer #10 · answered by da_zoo_keeper 5 · 0⤊ 1⤋