401K Contributions - REPOST

[orangeade]

Here's the deal... hoping you legal eagles can help...

I left my old job of ten years at the beginning of December 2008. For each of all those years, they would make a final yearly retirement payment to my 401k some time each January. This year, the payment has not appeared, and it's now nearing the beginning of April. I was told that they filed an extension to pay their taxes. This will not be until September 2009.

Legally, do I have a right to my retirement payment now? Is it something I could demand legally? What are my rights?

 

[TexasEd]

I don't know if it is something they consider you earning throughout the year. If so then you might be entitled to 11/12ths.

They could consider it something that is given to active employees on a certain date, like Jan 1 and were employees for the entire previous year. If so you would not be due anything.

You have to get that sorted out first.

 

[Tom Anderson]

It all depends upon what your plan document says. It would stipulate your rights, and you're entitled to a copy of the document if you're a plan partiicipant. Call your old HR dept.

 

[Seattle Husker]

Most companies that I'm familiar with require you to be employed with the company on the date of the company payment. So, if you left in December and the company pays out in January then you may be out.

Again, it all depends on the plan though when you are eligible to receive funds. Most companies are changing their plans to make their contribution "discretionary" going forward.

 

[orangeade]

Thank you for your replies... It's a sort of "catch up" payment that they make every year, based on the previous year's earnings. It's not a bonus or reward... hope that helps. I'll probably have to check with the IRA account holder for the rules, and not the HR department. She is one person and does pretty much what the owners tell her.