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Asked 7/30/2008

How long does a company have to give you your profit sharing $$ after termination?

My family owned employer provided "profit sharing" in the mid 1980's for his employees. In the mid 1990's he started a formal 401K plan. Only the employee's that were employed during the "profit sharing" days were still entitled to these accumlated monies. After 22 years, I am no longer working for this company but have had some difficulty having this company transfer my profit sharing/401K monies to my new employer's plan. Is there a time period that they are obligated to provide these savings to where ever I wish after my request? It's been 4 months and I am frustrated.

 
 
 
 
 
Answers

Answer 1/1 - Submitted 6/16/2010

There is no time period that I am aware of. I do know that you have to sign a Distribution Election Form where you elect to have your Profit Sharing rolled over to an IRA account or paid directly to you. If the latter of the two is chosen, you will only receive 78% of your vested account balance and 20% will be withheld for Federal taxes and 2% for State taxes. You will also need to sign a Consent to Distribution and Selection of Form of Benefit. Again on this form you will elect the payment type, whether it is a lump sum or rollover to an IRA, but most important, it has a Consent of Spouse that would need to be signed if applicable. Your employer should be able to provide you with this forms. If you are still having a problem you might want to contact the US Department of Labor in Washington, DC (Employee Benefit Securities).

 
 
 
 
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