Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
There is no time limit to remove your money from your former employer's plan regardless of the size of your account.
Since companies are usually charged a per participant fee by the plan recordkeeper, employers are allowed o automaitcally cash out former employees who have a balance of less than $5,000. IF there is more than $5,000 the employer must obtain the employees' signature before cashing them out of the Plan.
There is no time limit for cashing someone out with less than $5,000. They should allow you a resonable time to make a withdrawal decision.
Most employers will not cash you out imediately, for if they do so the check will be made out to you and 20% will be withheld automatically. The employer should, upon termination of service provide you with a withdrawal election form. If this form is not turned in withhin a reasonable time, then the employer is fre to cash you out. Most employers consider 30 days reasonable.
However, there is no written regulations that specify 30 days.
Hope this helps.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.