Expert: Allen - 2/22/2010

Question
My friend left a job about 10 years ago, but still has his money in that employer's pension plan. He'd like to withdraw it, now, for an IRA or for a 401K. But apparently they're telling him that he cannot get a distribution. What's the law on that? Should he have removed it within 60 days of his departure, or can he still access that money now? (He lives in Missouri.)
Thanks--

Answer
The distribution provisions vary from plan to plan. Many plans allow for distribution shortly after termination of employment. Others provide that it will occur a year later. Still others say that distribution will only occur after a participant reaches a certain age.

You need to get a copy of the Summary Plan Description or the Plan Document. If after reading you believe that your friend is entitled to his money, you can contact the local office of the U.S. Dept. of Labor - Employee Benefits Security Administration. They may be able to help. However, they casn only help if your friend is entitled to a distribution under the terms of the plan.