Ex-Employer Won't Release His 401(k)

Question: "I recently lost my job of three years, where I was invested in the 401(k) for two years. Ever since I left my job, the man running the 401(k) has been putting me off on getting my money out.

"I was wondering what the actual law is on how long they have to return my money, as others that I know have received their money in a matter of weeks. Thanks for your help."

--Micheal Beaty, Topeka, Kan.

Answer: You want to contact the human resources department and ask for the phone number of the company's 401(k) provider. The 401(k) is rarely managed by the employer but by another company such as Fidelity.

Get the name and 800 number for the company, which should be on any statements you've received. From then on, you should deal with any withdrawals directly from that company.

Remember that it would be in your best interest to keep your money in the 401(k) account or transfer it to an IRA or Roth IRA at any brokerage firm. This way the funds will continue to grow tax-deferred, and you won't be depleting your retirement. Federal law allows you to withdraw 401(k) money at any time, but an early withdrawal, which is what this would be, leads to both income taxes and a penalty.

You shouldn't have a problem once you locate the correct 401(k) firm, but if you do, contact the SEC, the Securities and Exchange Commission, at www.sec.gov.

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