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Asked 6/26/2010
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How can I release my 401K funds? I left my employer in August 2009 and had a 401K plan, 100% vested, that I participated in for at least 7 years. The employer was in Miami, FL and sold their business to a Michigan based company in November / December 2009. My plan was administered through Trans America. June 7, 2010, I completed paperwork to roll my fund over to an approved self directed IRA fund through my borkerage firm of Edward Jones. The last 3 weeks, Trans America acknowledges receiving my paperwork for roll over, but states that the plan stipulated the ex-employer who no longer exists, has to send over a release form. There is one administrater left from this ex-employer who my brokerage firm has been in contact with. The administrator has said they do not have the form, thinks there is a freeze on funds, is not aware of the problem - in other words is being uncooperative. We went back to Trans America and apparently they have also been requesting release from the employer without response. I have also done some digging and know of one other employee with the same problem (they now work for the Michigan company). So, how long do I have to wait for a resolve on this situation? My broker has obtained a copy of the release form and is going to try to reach the administrator on Monday, but I wonder if there is a bigger problem here. Do I need to call the department of labor at this point, or do I have to wait a longer period of time? |
Answer 1/1 - Submitted 6/26/2010
You would be better off filing a complaint now with the DOL then waiting any longer. It sounds like your former employer didn't make the contributions and the new people aren't willing to either. Also, TransAmerica may not have been doing their fiduciary duty by reporting IOUs for matching funds from your ex employer, which is why the stall is on. If they reported "all's well" to the company buying thefirm, they are liable. In other words the only people that can make everyone give up the paperwork is DOL, so don't delay.
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