Legal Question in Consumer Law in California

401k Disbursement

I contacted my 401k investment company because I planned on leaving my employer of 11 years due to a pregnancy and move out of state. Upon contacting the 401k representative I was told that I would have to wait 2 weeks for them to receive confirmation of my employment termination then my funds would be available to me. Upon hearing this info I put in my 2 week notice at my job and have been unemployed since 04/04/08. Now when I contact the 401k company they are telling me that there is a 45 day waiting period and I will have no funds available to me until that time is up. I now have no income from either myself or my husband. We are moving out of state, have to be out of our apartment on 05/09/08 and have no money at all. I will be 8 months pregnant and living in my car. I can't even pay Cobra to continue my heath insurance for myself and my unborn child. We have used all of our savings to pay off debt and prepare for this child. This should not happen due to someone giving me incorrect information. What can I do???


Asked on 4/17/08, 1:58 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: 401k Disbursement

I don't know if there's any legal action you can take. Perhaps talk to them about make a short term loan for a portion of the amount. Don't forget, if you withdraw the money, there might be severe tax consequences.

Read more
Answered on 4/17/08, 2:16 pm


Related Questions & Answers

More Consumer Law questions and answers in California