401K plan roll over can take 5 years with the IRS?


M

miamicuse

Our company was acquired by another company in year 2000.
After that we were enrolled in the parent company's 401K
plan. However the pre-existing 401K plan's fund had to be
rolled over to the new plan. Every time we asked the old
plan's administrator we were told it's pending IRS approval.
Meanwhile for 5 years now we cannot move, adjust, withdraw,
change investment options to our funds, it's basically
frozen...this is not even a public company. How can it take
five years? Is there something fishy going on? Can someone
else besides the filing company inquire IRS as to the status
of the filing? Is there some obligation by my company to
make a reasonable effort to process this in a reasonable
time period?

Thanks,

MC
 
Last edited by a moderator:
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B

Barry Picker

miamicuse said:
Our company was acquired by another company in year 2000.
After that we were enrolled in the parent company's 401K
plan. However the pre-existing 401K plan's fund had to be
rolled over to the new plan. Every time we asked the old
plan's administrator we were told it's pending IRS approval.
Meanwhile for 5 years now we cannot move, adjust, withdraw,
change investment options to our funds, it's basically
frozen...this is not even a public company. How can it take
five years? Is there something fishy going on? Can someone
else besides the filing company inquire IRS as to the status
of the filing? Is there some obligation by my company to
make a reasonable effort to process this in a reasonable
time period?
Sounds fishy to me. Has anyone confirmed that the assets in
the 401k plan actually exist? That's the first place I'd
look at this point.
 
Last edited by a moderator:
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H

Harlan Lunsford

miamicuse said:
Our company was acquired by another company in year 2000.
After that we were enrolled in the parent company's 401K
plan. However the pre-existing 401K plan's fund had to be
rolled over to the new plan. Every time we asked the old
plan's administrator we were told it's pending IRS approval.
Meanwhile for 5 years now we cannot move, adjust, withdraw,
change investment options to our funds, it's basically
frozen...this is not even a public company. How can it take
five years? Is there something fishy going on? Can someone
else besides the filing company inquire IRS as to the status
of the filing? Is there some obligation by my company to
make a reasonable effort to process this in a reasonable
time period?
Something smells fishy here, and I'm not talking about
Biscayne Bay.

Are you satisfied the plan is even still in place? Have
you been getting period statements on your status? Was your
investment totally in company stock?

If you can't "get no satisfaction" from the plan
administrator, hie thee to competent legal counsel.

ChEAr$,
Harlan Lunsford, EA n LA
 
Last edited by a moderator:

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