Employment Law

Employment Law Questions? Ask an Employment Lawyer.

Ask a Lawyer, Get an Answer ASAP!

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.

Can a 401K account be rolled over into an IRA while collecting unemployment in Colorado?

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 a former employer withhold vested 401k funds for 8-9 months before releasing it?

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?

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

Is it legal to use 401k to buy a franchise without penalty?

It is legal to use the 401K finances to purchase a franchise, but if the individual were under 59 ½ years of age they would be penalized for early withdrawal and distribution. 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.

What can an employee do if the company claims there was a system glitch and was dropped from the program for six months?

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.

.

Please type your question in the field below

3 verified Employment Lawyers are online now

Employment Lawyers on JustAnswer are verified through an extensive 8-step process including screening of licenses, certifications, education and/or employment. Learn more

Online
Tina

Lawyer

Doctoral Degree

★★★★★
8184 positive reviews
Online
Allen M., Esq.

Employment Lawyer

Juris Doctor, Cum Laude

★★★★★
12436 positive reviews
Online
Marsha411JD

Lawyer

Doctoral Degree

★★★★★
12200 positive reviews
See all Employment Lawyers
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.
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.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
Web sites like justanswer.com/legal
...leave nothing to chance.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.