How long does my ex employer have to return my 401k money..by law what is the time frame?
Answer:
They have until the paperwork is done and in their hands.
You know you should roll it over into an account with another employer, right?
If you actually 'take it out' of the current account, they'll tax you on it. If you roll it over into another they won't.
Employer 'B' will have to start the paper work with you, then send it to Employer 'A', who should transfer it into the new account.
Your ex-employer keeps the money until he receives instructions from you on what to do with it. You have to choose to either take the money in cash which will result in penalties and loss of interest or to roll the money over into a new retirement vehicle. This could be either a new 401k at your new employment or into an IRA. So the sooner you tell him what to do the sooner it will be done.
It could depend upon how much you have in the 401K account. When I left a job a few years ago (2002) the company just cut me a check for the balance in my account as it was only $2,XXX.
I did not get an opportunity to make a direct transfer to an IRA or anything else. If you have at least $5,000 in your account, you may be able to leave the funds invested in the existing account.
You need to contact the human resources department at your former employer and get their policies on 401K and former employees.
Good luck!
You'd need to check your 401(k) plan document. I've seen some pretty strange rules. One of my ex-employers had a stipulation that ex employees could roll their money out 12 months after termination.
Once again..one more reason folks should ALWAYS roll their money into an IRA and NEVER leave it in a 401(k).
You'd be suprised how many folks ask the question "why not just leave the money in my ex-employers' 401(k)."
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