How long does an employer have to release your 401k money to your IRA?

Question

Does anyone know if there is a law that states an employer only has a certain amount of time to release these funds to you? My old employer (not been employed for 3 1/2 years) still has not deposited my money in my ira. I went in and filled out all the paperwork with all my account information and done everything that I have been required to do. I am getting upset because I could have been making interest on this money for 3 1/2 years now. I did leave on good terms, but what should I do.

Answer 1

Do you have a copy of the paperwork?  Did you send it to them return receipt requested?  Do you have a copy of the signed receipt?  If so then call the US Department of Labor.  3.5 years is about 2.5 years over any reasonable period of time.  

If you didn't do the above things  then start over and send a registered letter requesting new paperwork...they've obviously lost the originals. Let them know in the letter that you have been attempting to process the rollover for 3 1/2 years and would like to resolve the issue immediately.  Give them a specific time period in which to respond (ie 10 days). Do not make any threats implied or otherwise.  Just ask for the paperwork and state that you expect to hear from them no later than xx/xx/xxxx.  Make that date at least 10 business days after they would receive the letter.  Provide them with your phone number in the letter and a self-addressed stamped envelope in which they can provide the paperwork. Make it as easy as possible for them.  If by that time you haven't heard from them then call the US Dept of Labor.  If they do respond then fill out paperwork and send it back via return receipt requested letter (keep a copy).  Again with a letter attached stating that you expect the paperwork to be processed by xx/xx/xxxx date (again 10 business days).    

this should take care of it...but again, if you get no response or any response other than perfect service you need to contact the DOL.  Be prepared to provide them documentation of exactly how you tried to resolve it...that's why you need to send letters and use return receipt requested.  Paper trail is mandatory!

Answer 2

I did a rollover just this year.  It took about 2 weeks.  They've obviously lost or misplaced the paperwork.  Go in, and fill it out again & this time get copies.  

I wouldn't worry about the interest you've lost.  Where ever, what ever you've got it invested in now, is quite likely also earning interest.  

Answer 3

First call your former employer and ask them why it has not been done, is it a possible oversight.

You should talk to a finacial advisor or the companys legal dept and get them moving on it...if your account has no activity in 5 years I think it is considered an inactive account and the Government can just take it. I don't know about 401  accounts but regular savings and checking accounts with no activity for 5 years get seized for sure. I just had to deposit some money in an account for an elderly friend of mine so her account was not seized. "she forgot she had the account"..