Unless he was receiving deffered compensation from the previous employer as part of a layoff/early retirement/retirement agreement, why would their be an expectation that the 401K still would have matching funds being deposited? If he’s not working for this company anymore, why would you be receiving any type of deposit?
Confused on this.
He wasn’t still receiving the company match after he left the company, but the money is still listed separately in the account:
$10 from employee
$ 5 from employer
We are being told that even though he left the company fully vested, that he only gets the $10 and not the $5 if that is, in fact, in the new plan’s rules. It’s all new to me.
You sure are.
She didn't say a word about matching funds.
And I believe that she did say he left the account balance with that old employer.
I happen to have the identical process going right now. I live in California.
First of all, 401(k) plans do not require matching funds by the employer. That is optional. Most of the contributions are employee pretax funds.
I left that firm 8 years ago, and left it there the entire time. The account grew about 100% in 8 years and I'm arranging to transfer it to consolidate retirement accounts this month.
Incidentally, the company reorganized; the name is somewhat different, but that had absolutely no effect on the administration of the account.
State and Federal regulations do not allow fiduciary game playing by 401(k) administrators.