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My wife works for a small company that has a 401K plan but doesn't contribute any matching funds. After switching to a different company to handle the 401K plan in January,some money that has been collected to be put into her plan has not been deposited. After trying for over a month to get the problem resolved, she asked to stop withdrawals from her paycheck until the problem was fixed and that she wanted to rollover the account to an IRA. She was informed by the new administrator of the 401k plan that as long as she was working for this company, she couldn't rollover her 401k. I don't know where to find the answer, as to whether she can rollover this plan or not! Can anyone help me with this problem?
Thanks
trwkmw
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A few 401K plans will allow partial rollovers to an IRA while you are still employed there, but most will not. It depends on the rules of your plan. So she must leave the company in order to be elegible for a rollover.
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To pauleckler
Thank you for your reply, i will check out the rules of the plan!
trwkmw
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She was informed by the new administrator of the 401k plan that as long as she was working for this company, she couldn't rollover her 401k. I don't know where to find the answer, as to whether she can rollover this plan or not!

No, she will not be able to rollover the 401k into an IRA as long as she is still employed at the firm.

some money that has been collected to be put into her plan has not been deposited.

This is an even bigger issue. Your employer is required to have your payroll deposits into the 401k plan as soon as administratively possible, but no later than the 15th of the month after the month in which the payroll deduction was made. The U.S. Department of labor has sued more than one employer for not doing so. To pursue, contact the U.S. Department of Labor's Office of Participant Assistance and Communications at 202-219-8776.

Rick Meigs
www.401khelpcenter.com
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This is an even bigger issue. Your employer is required to have your payroll deposits into the 401k plan as soon as administratively possible, but no later than the 15th of the month after the month in which the payroll deduction was made. The U.S. Department of labor has sued more than one employer for not doing so. To pursue, contact the U.S. Department of Labor's Office of Participant Assistance and Communications at 202-219-8776.

Rick Meigs
www.401khelpcenter.com


Hi Rick,

Shouldn't the above say the 15th business day of the month?

Thanks,
Bryan
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Shouldn't the above say the 15th business day of the month?

Yes, you are correct. Thank you for picking up on this.

Rick Meigs
www.401khelpcenter.com

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