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Best Attorney
Best Attorney, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 57
Experience:  General Law Attorney with 18 years of experience.
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We are purchasing our first home. We are trying to withdraw

Customer Question

We are purchasing our first home. We are trying to withdraw (hardship withdraw) from a 401k (my spouse is still employed with the company). He has elected to quit participating in the 401k. We want to withdraw monies to help with down payment. He has been trying for months! With many delays. He has provided all the documentation asked for and they have delayed saying they couldn't open said documents etc. and never informing him they couldn't. Finally after confirming they have all the documentation, they now say since the deadline for the deposits has passed they want to confirm if we made any of them and if so, we cannot receive the full amount asked for. They have asked to contact the builder personally to confirm. It is a large well known retirement management company.
Submitted: 4 months ago.
Category: Consumer Protection Law
Expert:  Best Attorney replied 4 months ago.

Hi. My name is*****'m an attorney and I'm happy to help. It sounds like they are trying to verify the "Hardship" part of the elective withdrawal. They have a right to do that within the confines of the stated policy of the 401 k plan. You need to make sure that you are within their definition of "hardship". If so, there should be no problem and if you need to follow up with their dispute resolution team, so be it. Their delay should not be your problem. If however, there are legitimate questions about your access to funds during the period of time you requested the withdrawal, you need to also address those. Did you make a down payment and where did that money come from (is what I'm assuming they're after). Either way you need to indicate to indicate to them that you want a decision. If yes, great. If no, and assuming you believe that you have complied with their requirements, then start the appeal process with that company.

I hope this helps. If so, a positive rating is appreciated.

Regards,

Sande

Customer: replied 4 months ago.
We have managed to make some of the payments assuming that we would get everything approved and be able to re-coup a bit. We had deadlines to meet on deposits or lose the contract. All the while trying to keep up with rent, bills and deposits. their says it can be used to purchase a principle home on their website. (not if they wait until all deposits were due and either you lose the home contract or you scrimp by and try to make the deposits believing that you can have your money and then tell you no?) He did provide them timely with everything they requested and either they were out of the office or couldn't "open" documents. We had "deadlines" to meet and they totally disregarded them. And now say that even though we have provided documentation from the lender and the builder they personally want to speak with them and anything down we have paid will be subtracted from what is left.

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