The folks who manage 401(k) accounts were given the option to not have to hold small accounts once a contributor has left the company (retired, laid off, fired, whatever). So if your account was below a certain value, usually $3000 or $5000, they will distribute the funds to you.

This isn't the same as giving your contribution to you. It is a distribution from a retirement plan, and is subject to income tax and a 10% early distribution penalty if you're under age 59 1/2. They may give you the option to have taxes withheld on the distribution. If they do, have at least 10% withheld for federal taxes; 20% would be closer to an accurate federal tax.

There is also no set timeframe for them to release this money. It should happen in under a year ... so don't spend it until you get it, and even then, save some for taxes.

The contributions that you have made towards your 401K is yours, and you will receive it. However, your employer's contributions, you might not. Most companies have a vesting period if an employer contributes to the plan. It is usually based upon the number of years that an employee has worked for the company and in increments of 25%.

For example, if you work one year for the company, you are 25% vested. If the employer contributed $1000.00, you would be entitled to $250.00. The rest would go back to the employer.

If your employer back-dated vesting, you are most likely fully vested. If your employer did not back-date the vesting, starting it the day the plan began, you are not even 25% vested.

If you receive statements from the plan, you should be able to tell from the statements, somewhere, if you are fully vested or not. You could also call the plan administrator.

As far as when you will receive your money, you need to call the plan administrator and ask what the policy is. It is up to the employer on the length of time must one wait to receive the money (sometimes it is as soon as the employer-employee relationship terminates), and sometimes there is a waiting period. You're not going to find out until you call and ask. You will also need to find out the steps you need to take to withdrawal the money. It usually consists of certain forms being mailed out to you, and you have to have your signature notarized.

You can avoid paying taxes and penalties on the 401-K distribution by rolling into over into another IRA. Brokerage houses like Fidelity, Vanguard and T. Rowe Price can hold your funds and make investments as you direct them.