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Infolawyer
Infolawyer, Lawyer
Category: Employment Law
Satisfied Customers: 64635
Experience:  Licensed attorney helping employers and employees.
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I recently resigned from my previous job and had a 401K with

Customer Question

I recently resigned from my previous job and had a 401K with them that I contributed to as well as the company contribution for the 5 years that I was there. I was looking to cash out the 401K since I had some unexpected expenses come up. My previous employer told me that I can't have access to the funds until my resignation is at least a year old and they have refused to allow the 401k company to release the money. The headquarters for this business is in MD but I live in VA
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: I live in VA but the corporate office is in Maryland
JA: Is the employment agreement "at will," union, full time or part time?
Customer: At Will Full time
JA: Anything else you want the lawyer to know before I connect you?
Customer: I think that that is all
Submitted: 1 year ago.
Category: Employment Law
Expert:  Infolawyer replied 1 year ago.

Hello and welcome. I am working on your answer and will be right back!

Expert:  Infolawyer replied 1 year ago.

On resigning, you have the options to rollover the 401k, keep as is, borrow from it, or cash it out. Company one year waiting period is incorrect, and burden is on company to show that such a limitation was disclosed and is part of the 401k plan - which is highly unusual. If company refuses you may threaten a complaint to the labor board, attorney general office, insurance department and lawsuit.

Customer: replied 1 year ago.
by them saying I have no access to the funds for at least a year that is breaking the law. Would it be best to contact the labor board in VA where I live or in MD where their coporate headquarters is. And no, this was not disclosed to us all of my peers were unaware of this information as well.
Expert:  Infolawyer replied 1 year ago.

Yes, where the plan has no such limitation. I would notify the labor board where you reside and let them investigate and do the legwork - and its without incurring lawyer fees.

Expert:  Infolawyer replied 1 year ago.
Please let me know if the reply is acceptable by responding "yes" or "acceptable"
Customer: replied 1 year ago.
Thank you for your help
Expert:  Infolawyer replied 1 year ago.

Very welcome. Good luck. Kindly rate my 5 stars.