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About Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension.
I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures.
Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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You are here: Experts > People/Relationships > Retirement Planning > Accounting, Payroll & Pension Issues > Closing a 401K
Expert: Shirley McAllister, CPP, PHR
Date: 5/19/2008
Subject: Closing a 401K
Question
I quit my job (in Louisiana) in May 2008 after 7 years of employment and opted to cash out my 401K. The company that handles our 401K says that I will not receive the check for cash out until December 2010. Is this possible? When you quit how long can your ex-employer tie up your 401K if you close it out?
Answer
We pay out our 401K to terminating employees within 30 days of termination if the proper paperwork is filled out.
I think the answer lies in your summary plan documentation. You should have a copy of it as employers are obligated to give you a copy. Some plans do not allow you to take the money out until you retire, some state a specific age, some plans pay out upon termination usually within 30 days. It depends on how your plan documents are written.
The rules do not say your employer has to pay you out in a lump sum, but they do say that he has to follow what is written within the summary plan documents.
If you do not have a copy I suggest you obtain a copy from your employer.
The EBSA (Employee Benefits Security Administration) which is a branch from the Erisa division of the Department of Labor administers the compliance with 401K rules and regulations.
I suggest you contact them right away they will be able to answer any questions you have about regulation of 401K plans, although they will ask you about the summary plan documents for your specific plan.
Employee Benefits Security Administration (EBSA)
200 Constitution Avenue, NW
Room N-5623
Washington, DC 20210
Contact EBSA
Tel: 1-866-444-EBSA (3272)
TTY: 1-877-889-5627
Regional Offices
Shirley
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