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Asked 3/29/2009
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Employer error, canceling 401K Last year I contributed to my company's 401K plan. Mid-year they said I actually didn't qualify to be in the plan so they would stop taking contributions from my paycheck. They never stopped taking the 401K contributions out of my paycheck even though I reminded them several times. They are still taking $ out this year. When I reminded them again, they said they would stop and give me the money back after they calculated the amount. Furthermore, because I have 401K contributions on my W-2 the IRS doesn't allowed me to make deduct my IRA contribution on last years taxes. Should I be concerned? I shouldn't have to pay fees or fines because of their mistakes. Should my employer give me a corrected W-2? |
Answer 1/2 - Submitted 3/30/2009
Answer 2/2 - Submitted 4/1/2009
Yes, the employer should give you a corrected W-2, and yes, if you don't qualify for their 401(k), you can be refused entry into the plan. Of course, they must give you all your money back, and you should not have any fees. Its hard to see how they can be so slow about this. Maybe it is time for you to get all this in writing to protect your rights, or, at least go over the head of the person handling this to their manager.
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