Company Termination Of 401k Plan

[Grufydd]

I wanted to know how long it usually takes to receive a pay out of your 401K Plan if your employer is terminating the plan.  I had a loan against my plan which I was repaying back thru a payroll deduction but my employer stopped my payments back in  February 2011 saying they were going to terminate the plan.  To date I have received no information on what is going on with the plan from either my employer or plan administrator.  I have contacted the administrator of the plan and his response was that he needs to send out information to the participants on rolling the money into an IRA account.  My employer says they've turned in all the paperwork to the plan administrator. It has been 4 months and nothing is happening.  Are there any time limits the employer has to meet when terminating a 401K plan?  The money I have in there is just sitting there not making anything. As an employee what rights do I have in questioning my employer or plan administrator on what's going on with my 401K. And do I have the option of requesting a pay out and doing my own investing?  

Thank you in advance for your help.

Kathryn Jones

[De]

Information should be given to you at least on a quarterly basis. The Department of Labor EBSA department actually polices the 401K plans for compliance. http://askebsa.dol.gov/

Above is a number you can call with questions. They would be the ones with the answers. http://www.dol.gov/ebsa/faqs/faq_consumer_pension.html

above is a page with answers to questions about 401K plans from the Department of Labor

Generally, the law requires plans to pay retirement benefits no later than the time a participant  reaches normal retirement age.  But, many plans -- including 401(k) plans --provide for earlier payments under certain circumstances.  For example, a plan's rules may  allow participants in a 401(k) plan to receive payment of benefits after terminating employment.  The plan's Summary Plan Description(SPD) should set forth the plan’s rules for obtaining the distribution as well as the timing of distribution after termination of employment.

If you are unable to get the SPD, the summary annual report, or the annual report from the plan administrator, you may be able to obtain a copy by writing to:

U.S. Department of Labor

EBSA Public Disclosure Room

200 Constitution Avenue, NW, Suite N-1513

Washington, DC 20210 Participants should include their name, address, and telephone number to assist the Employee Benefits Security Administration(EBSA) in responding to their request.  There may be a nominal copying charge.

If you have information that plan assets are being mismanaged or misused, send details to the EBSA office nearest where you live.http://www.dol.gov/ebsa/aboutebsa/org_chart.html#section13

Above is a link to the state EBSA offices.

Shirley