My employer took a 401k distribution for themselves, without my knowledge. Is this legal?
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My employer took a 401k distribution for themselves, without my knowledge. Is this legal?
I was looking at my 401k plan online and saw 2 Distribution transactions. I was
shocked as I did not request the withdrawal. When I called the 401k company,
they told me the 2 transactions went to my employer. Is this legal? Aren’t they
required to notify me?
Asked on April 3, 2018 under Employment Labor Law, Minnesota
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
There is a word for when someone else takes a distribution of your money: theft. The employer had no right to request a distribution or, if one was made to it in error, to keep it. Contact the police if you don't get a satisfactory answer (and return of the money, or at least firm schedule for its relatively soon) immediately: you can also sue them for the money (on your own would likely be the best way ["pro se"], if the amount is under the small claims limit; with an attorney, if over that amount).
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