One of the questions we hear often is, “Can my company force me to leave my 401K?”
And the answer is, yes, there are certain circumstances where the retirement plan can force you out of the plan regardless of your preference to remain.
According to the IRS, your company can force you out of your plan, but there are certain circumstances where the plan administrator must obtain your consent before making a distribution. For instance, if your account balance exceeds $5,000, the plan administrator must obtain your consent before making a distribution. There are cases that, depending on the type of benefit distribution provided under your 401K plan, the plan may also require your spouses consent before making a distribution. Also, if the balance of your account is under $1,000 the plan administrator can distribute your balance in cash.
There are more conditions and situations when it comes to your employers right to force you out of your retirement plan. If you are interested in hearing more, contact our team. We’d like the opportunity to speak with you and answer your questions. Let’s talk.read more