How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds

Ask an Employment Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 8108
Experience:  JD, BBA, recognized by ABA for excellence.
4460311
Type Your Employment Law Question Here...
characters left:
4 Employment Lawyers are Online Now

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
< Last | Next >
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
  • Excellent direction from Socrateaser to help me preserve and pursue my rights as a proud American who has become unemployed in this messed-up economic downfall. Thank you Happy Customer Denver, CO
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
 
 
 

Questions about 401K Rules

What is a 401k?

A 401k is a long-term plan for saving towards retirement. It actually is named after the section of the IRS laws that allow financial planning. Usually, 401k plans are only available through an employer where money is taken out of pay and invested into money market funds, growth funds or other types of retirement savings accounts that accumulate over time. Many times the confusion from one plan to another for investing the 401k can bring many questions. Ask an Expert any of your 401k questions for quick and affordable answers.

Can someone roll his or her 401K into an IRA while collecting unemployment in Colorado? They are not withdrawing any money as cash.

Under Sections 8-73-110 (3) (A) & (C) of the state of Colorado Employment Security Act, since if you do not reinvest every penny of the 401(K) in an IRA or Keogh plan, the entire amount 401(K) was being treated as a lump-sum retirement payment. If you roll the whole 401(K) over, then it is not calculated against you for unemployment.

Can someone’s former employer withhold a party’s vested 401k funds for eight to nine months before releasing it to the party?

If the individual is vested, it must be paid on demand. There is no basis for the delay. Unless it can point to a specific clause in the investment that requires funds to remain closed for a certain period affecting you, it cannot do so, and you may pursue a complaint with the labor board.

Is a 401k distribution, considered income when reporting to California EDD?

Yes. The individual should register it as income during the week that the individual got the distribution. It’s not earned income, therefore it would only effect that week of benefits.

Is it legal to use your 401k to buy a franchise without penalty? Some say yes some say no. the party has not spoken to a lawyer though. Does the IRS frown upon them?

It is legal to use the 401K finances to purchase a franchise, but if the individual were under 59 1/2 they would be given hit with penalties for early withdrawal, and distribution. Seeing as the individual is using the finances in a way that is not authorized under the individual’s 401K account, named on the individual and for an outside asset. Removing funds for an investment is not one of the permitted withdrawals that are penalty free. Therefore, while it is officially legal to use the funds for a purchase, it is extremely costly due to the additional tax penalties.

If someone is enrolled in a company’s 401K program, and they was contributing until July, when for some reason (they are saying systems glitch) the party was dropped for it, so nothing was taken out and no match was given. No they are saying, sorry, the company can add the party back in again, but cannot do anything about the past 6 months. Does someone have any recourse?

In most cases, the federal tax law deems when deposits to 401k’s can be made and if the company made an error inadvertently stopping the contributions coming out of our check and therefore stops making them into the 401k fund, the laws will not allow them to go back in and fix it after the fact (it is to prevent people from adding to their 401k’s at the end of the year to avoid taxes). So, as long as they didn’t take it out of your check to begin with all you can do is monitor your payroll stubs in the future and be sure they are deducting it each pay period.

401K is a very diverse topic. It can span one question after another. There are additional questions that could come up. Such as: 401k contribution limits, 401K hardship withdrawal, and 401K problems. Experts can help by answering any questions that you may have.

Ask an Employment Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 8108
Experience:  JD, BBA, recognized by ABA for excellence.
4460311
Type Your Employment Law Question Here...
characters left:
4 Employment Lawyers are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Employment Lawyers are online & ready to help you now

Tina
Lawyer
Satisfied Customers: 7759
JD, BBA, recognized by ABA for excellence.
Marsha411JD
Lawyer
Satisfied Customers: 10539
Licensed Attorney with 27 yrs. exp in Employment Law
Infolawyer
Lawyer
Satisfied Customers: 9785
Licensed attorney helping employers and employees.

Recent 401K Questions

  • I have a 403b with my employer that I would like to rollover

    I have a 403b with my employer that I would like to rollover to a 401k. The plan I am now in has a rule that I cannot access any of my money or rollover to another plan until I leave my current employer, the State of NJ. I do not want to leave my employer as I would like to continue to pay into my current pension plan until I retire. I am 61.5 years old and plan to work until age 66.
    Are there any loopholes or ways around the rule that would allow me to access some of the funds or rollover into a 401k?
  • I work (for several months per year) for a large (20,000 employee)

    I work (for several months per year) for a large (20,000 employee) company. When I leave each year, I am not an employee of the company and must be re-hired to work again. I am a W-2 employee and each year am eligible for and enroll in the company Capital Accumulation Plan and am entitled up to 80% after receiving my first paycheck. This year after my first paycheck, I called and enrolled in the 80% gross payroll deduction which would start on Oct 30, 2014.
    Did not receive the 401K deduct on Oct 30, 2014, nor Nov. 13th, nor Nov.26th checks. Finally did receive the 401K deducts on Dec 11th check. Calculating 80% of my gross earnings will put my 401K for the past 4 paychecks at a total contributions at a total of $23,800.00 for the year.
    I have e-mailed and called many many times on and after Oct. 30th for correction but it appears that no one is listening.
    The company has asked for all of the net earnings back, except the net amount of small check after the 80% gross money would have been deducted. I wired the amount back to them on Dec 16, 2014. By now, Vanguard should have received full funding from my employer of $23,800.00 however Vanguard has only received approx. $17,500.00 as of today. The end of the year is near and for whatever unknown reason, they are withholding approx $6,000.00 of earned income buy dispersing it erroneously and not funding my 401K fund in a timely manner.
    Others that that are also W-2 employees with this company have had no problem with 401 contributions at all.
    Who legally can help in this matter and what recourse do I have for not funding in a timely manner and maybe miss the window once 2015 rolls around??
  • I own a surgical device distributorship in Las Vegas, NV. and

    I own a surgical device distributorship in Las Vegas, NV. and we represent a single manufactures products for a designated geography. I currently have 12 employees, 2 of which are in-house office employees and the remainder commissioned sales representatives. We sell into a set geographic area (Las Vegas & St. George, UT) and sell to orthopedics surgeons, hospital operating rooms and surgery centers. When I took over this distributorship 4 yrs ago we made all of our reps W-2 employees except for one. In his case he was already selling several other companies products and he did not want to stop, so we made him a 1099 contractor. We chose W2 status for the others because we wanted the reps to only sell one companies products. We put into place a group health plan and 401K. Most of the reps were paid via monthly commission and an annual bonus. I do have a newer rep who has been given a salary for the first year and then will move to a full commission plan. I also have two reps who are starting up new business areas and I have been paying them a salary plus commissions/bonus until the sales get big enough to go to 100% commission. Our reps do have a lot of freedom on how they perform their duties. They can sell to any doctor they want and sell any product they want (this manufacture has over 6,000 products to sell). It is necessary for us to achieve set sales quota's to earn our annual bonus and be a distributor in good standing with our primary manufacture. Once a doctor has agreed to use a product the rep then works with the hospital or surgery center to have them purchase those items for the doctor to use in surgery. The rep will also provide assistance by bringing these products or instruments to the case for him to use and will stay throughout the case to offer any assistance. The reps have no set hours and are free to eat or take time off as they please, just so long as they make arrangements to have any surgical cases covered by other reps. The manufacture does provide specialty training and annual awards meeting which I have paid their travel expenses to make it easy for them to attend and learn the correct way to operate these products. We do have monthly sales/training meetings, but if they have on going surgical cases or urgent personal needs they do not have to attend. I have an office where we store surgical products and instruments which the reps will come pick up and take with them to each surgical case. We also purchase specialty instruments which we loan out to the reps and surgeons to help them correctly use the products we sell. In the surgical sales industry most distributorships have been 1099 status and most who represent our current manufactures products are 1099 status. I'm now considering making a change in order to allow our reps the ability to represent additional manufactures. Market price pressures are lowering our commissions and it's expected to continue in the coming years. In an effort to help the reps earn more money we wanted to open up the vendor options for them to represent. We plan to have a new 1099 version contract put into place, we will shut down our health and 401K programs and will ask they do an individual plan.
    I realize you are not in the business of providing free advice but I was hoping you could comment on our situation and if you feel we would meet the 1099 standards.
< Last | Next >
View More Employment Law Questions