My employer took a 401k distribution for themselves, without my knowledge. Is this legal?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption