Anyone Else Find They Have No Access To Their 401k? - Chevelle Tech
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post #1 of 59 (permalink) Old Mar 2nd, 10, 2:05 PM Thread Starter
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Anyone Else Find They Have No Access To Their 401k?

My wife just tried to get some money out of her 401k and discovered that except for a hardship (which doesn't cover auto repair) she cannot access until she either leaves the company or turns 59 1/2!
From what the guy said this is a recent change in the companies policy that took affect last year!
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post #2 of 59 (permalink) Old Mar 2nd, 10, 2:08 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

My wifes is the same way....I wish i could of pulled it out before the crash.

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post #3 of 59 (permalink) Old Mar 2nd, 10, 2:08 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

You should be able to, at the very least, take out a secured loan against the 401k holdings.
This is probably specific to her company's 401k servicer.

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post #4 of 59 (permalink) Old Mar 2nd, 10, 2:30 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

From what I remember of the rules, any withdrawal prior to age 59.5 is hit with taxes plus a 10% penalty for early withdrawal.
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post #5 of 59 (permalink) Old Mar 2nd, 10, 2:48 PM Thread Starter
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Re: Anyone Else Find They Have No Access To Their 401k?

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Originally Posted by GenPac View Post
You should be able to, at the very least, take out a secured loan against the 401k holdings.
This is probably specific to her company's 401k servicer.
There is no way to pull out any funds (not even a loan) except for a hardship according to the plan. Period.
I just went into her plan and went to zero on her contribution. Not putting another dime in if I have any access to it.
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post #6 of 59 (permalink) Old Mar 2nd, 10, 2:58 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

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Originally Posted by PaPa Johns 77 View Post
There is no way to pull out any funds (not even a loan) except for a hardship according to the plan. Period.
I just went into her plan and went to zero on her contribution. Not putting another dime in if I have any access to it.

Well, thankfully it's not all 401k plans across the board. Was you wife notified at all about this change? Seems drastic... Like the next step is looting the company pension plans.

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post #7 of 59 (permalink) Old Mar 2nd, 10, 3:20 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

if you could draw, certain amounts are hit with the 10% penalty-wether you can draw or not is up to the plan you have-if you change jobs, you can roll it over into another plan
ck and see if you can draw a loan against it

when your credit cards are maxed, have the limits raised
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post #8 of 59 (permalink) Old Mar 2nd, 10, 3:32 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

I think you might have gotten some bad information. The company and/or plan can restrict your access to COMPANY MATCHING funds, if any, but your money that you put in there is yours to use, subject to taxes and the 10% penalty discussed above. You can either borrow against it, if the company and/or plan allows, or you can simply withdraw, which the company has no control over.
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post #9 of 59 (permalink) Old Mar 2nd, 10, 3:33 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

Not trying to piss anybody off, but they are called "retirement plans" for a reason. Just my 2 cents.

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post #10 of 59 (permalink) Old Mar 2nd, 10, 3:57 PM Thread Starter
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Re: Anyone Else Find They Have No Access To Their 401k?

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I think you might have gotten some bad information. The company and/or plan can restrict your access to COMPANY MATCHING funds, if any, but your money that you put in there is yours to use, subject to taxes and the 10% penalty discussed above. You can either borrow against it, if the company and/or plan allows, or you can simply withdraw, which the company has no control over.
We spent over an hour arguing this with Merril Lynch and it is how the 401k plan was structured for Wal-Mart. We were on line at the same time andhe directed us to the parts of the plan the say this!
I will say it is a shame on us for not keeping up on this information and making adjustments accordingly.
I know Wal-Mart just settled a class action on a former 401k plan they had.
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post #11 of 59 (permalink) Old Mar 2nd, 10, 4:25 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

My job with the State of GA does NO matching funds at all.
Everything in my 401K is put there by me.
I cannot access it either. No loans, no withdrawals except for hardship and dang hard to prove a hardship.
I thought it was strange also that I had no access but whatever.............
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post #12 of 59 (permalink) Old Mar 2nd, 10, 5:05 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

Quote:
Originally Posted by PaPa Johns 77 View Post
My wife just tried to get some money out of her 401k and discovered that except for a hardship (which doesn't cover auto repair) she cannot access until she either leaves the company or turns 59 1/2!
From what the guy said this is a recent change in the companies policy that took affect last year!
That's the way my plan is. I CAN take a loan of up to 50% of the value of the fund.

But I can't pull the money out entirely until I turn 59 1/2 or leave the company. At which point I have to pay taxes and penalties.

If I take a loan, I have to pay myself interest unless it is to buy a primary residence or pay medical expenses which would otherwise bankrupt me.

If you're mad now, wait until the government confiscates your 401k.

Jeff

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post #13 of 59 (permalink) Old Mar 2nd, 10, 6:46 PM Thread Starter
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Re: Anyone Else Find They Have No Access To Their 401k?

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Originally Posted by jpete View Post
That's the way my plan is. I CAN take a loan of up to 50% of the value of the fund.

But I can't pull the money out entirely until I turn 59 1/2 or leave the company. At which point I have to pay taxes and penalties.

If I take a loan, I have to pay myself interest unless it is to buy a primary residence or pay medical expenses which would otherwise bankrupt me.

If you're mad now, wait until the government confiscates your 401k.
I hear that!
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post #14 of 59 (permalink) Old Mar 2nd, 10, 7:21 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

Too bad the GOV didn't have to follow similar rules when raiding Social Security.

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post #15 of 59 (permalink) Old Mar 2nd, 10, 7:26 PM
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Re: Anyone Else Find They Have No Access To Their 401k?

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Originally Posted by webfoot View Post
Not trying to piss anybody off, but they are called "retirement plans" for a reason. Just my 2 cents.
No question, but if you starve to death before you retire, what's the point?

Jeff

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