Forfeiture of 401k
In regards to yesterday’s question on 401K forfeiture withdrawal can the company legally take back 3.5 years on an administration mistake. I was thinking they could only take back the mistake from the calendar year?
Terry Says
It turns out, after some research, that f
401(k) forfeitures are a hot legal topic these days. Just google 401k forfeiture lawsuits and you’ll see what I mean. The current issues seem to revolve around the loss of unvested matching contributions if an individual leaves the job before full vesting. Is that what you’re referring to?
Or are you asking about a company withdrawal of ALL matching contributions? (They can’t take YOUR contributions since they belong to you.)
It’s hard to imagine a company of any size doing something illegal, since these plans are supervised by the Department of Labor.
But if you want to pursue this:
To file a complaint about a 401(k) plan with the U.S. Department of Labor, you can contact the Employee Benefits Security Administration (EBSA) by calling 1-866-444-3272 or online at www.askebsa.dol.gov.