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ScottyMacEsq
ScottyMacEsq, Lawyer
Category: Family Law
Satisfied Customers: 16149
Experience:  Licensed Texas General Practice Attorney
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How long does an employer have to act on a request to process

Customer Question

How long does an employer have to act on a request to process a distribution the 401 K.
A terminated employee is seeking a distribution at time of termination? What is the fair timely process and what amount of time in Illinois is simply irresponsible?
Submitted: 11 months ago.
Category: Family Law
Expert:  ScottyMacEsq replied 11 months ago.
Thank you for using JustAnswer. I'm sorry to hear about your situation. Have you contacted the plan administrator? Do you have a copy of the plan itself? There's no set amount of time that they have to distribute the funds, but rather the plan governs it. Furthermore, it's not the employer that controls the funds. The employer has no right to those funds. All profit sharing plans and 401K’s are governed under the Employment Retirement Income Security Act (ERISA). You will need to contact your plan’s administrator to determine what the open period is for your plan and when disbursements are made. Each plan usually has a set open period that allows disbursements to be made to employees who no longer work for the company. When you find out about the open period, you will have to file a request for disbursement. This can be done without contacting the former employer, just by looking at your plan and determining who to contact. Usually, all contact information can be found in the plan material you would have been provided at the time of getting into the plan. Now assuming that you're under 60, you would have a penalty of withdrawing all of the 401k, unless you roll it over into an IRA. You can contact your bank or other investment company (like Fidelity) to handle the rollover. In such a manner they'll conduct an "ACAT" transfer (they'll know what this means). Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Thank you, ***** ***** luck to you!
Expert:  ScottyMacEsq replied 11 months ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 11 months ago.
I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know.If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!
Expert:  ScottyMacEsq replied 11 months ago.
I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know.If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!
Expert:  ScottyMacEsq replied 11 months ago.
Are you there? Please note that I am still here, awaiting your response or rating... (please note that rating closes this question out, so if there's nothing else, please rate it so that I can assist other customers that are waiting for answers to their questions)
Expert:  ScottyMacEsq replied 11 months ago.
Did you have any other questions before you rate this answer?

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