My employer took a 401k distribution for themselves, without my knowledge. Is this legal?

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My employer took a 401k distribution for themselves, without my knowledge. Is this legal?

I was looking at my 401k plan online and saw 2 Distribution transactions. I was
shocked as I did not request the withdrawal. When I called the 401k company,
they told me the 2 transactions went to my employer. Is this legal? Aren’t they
required to notify me?

Asked on April 3, 2018 under Employment Labor Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

There is a word for when someone else takes a distribution of your money: theft. The employer had no right to request a distribution or, if one was made to it in error, to keep it. Contact the police if you don't get a satisfactory answer (and return of the money, or at least firm schedule for its relatively soon) immediately: you can also sue them for the money (on your own would likely be the best way ["pro se"], if the amount is under the small claims limit; with an attorney, if over that amount).


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