Simple answer - NO - he cannot legally withhold your 401(k) Distribution from you. Unfortunately, he can slow things down quite a bit. Chances are, you will need to stay on him with multiple letters, cc'd to the Plan's TPA (Third Party Administrator - the one that your former boss contracted) and (for added emphasis) a Retirement Plan Attorney or similarly designated professional.

If the ex-boss drags his feet and you let him, who knows how long it could take to get your proper Distribution!

In other words, the sooner you show him that you mean business, the quicker you are likely to get your Retirement funds. (And let us hope he does not choose to file as Insolvent or Bankrupt and claim that he does not have the assets available to pay!)

Best of luck in your upcoming fight! :)

When I contacted my former employer about a 401k dist. I was told that all distributions were held up for the first 6 months of this year. I contacted them today and was told that until the company had determined the value of their stock that there would be no distributions. When I asked them when that would be finished I was told that they did not know but hopefully by the end of this month. This is only a problem because I need the money soon. Can they do this?