In early 2011 my company A was sold to company B. As a result, I rolled my 401k to my new company B (2011). My new company laid us off early this year 2012.
A few months ago (2012), I received a call from the trustee for company A. They claim they over-funded my 401k on the company match. They are asking for their money back. They tell me this is done all the time, its very simple. They made no mention of tax liability.
I called the trustee for my current 401k and they tell me I would have to do a withdrawal and pay the 10% penalty and taxes on the money I 'return'. Are they right?
It is a small amount, but if I am liable for taxes and penalty, I would not do this until they guarantee in writing that they would pay any taxes due.
Any insights from professionals? Thanks!
A few months ago (2012), I received a call from the trustee for company A. They claim they over-funded my 401k on the company match. They are asking for their money back. They tell me this is done all the time, its very simple. They made no mention of tax liability.
I called the trustee for my current 401k and they tell me I would have to do a withdrawal and pay the 10% penalty and taxes on the money I 'return'. Are they right?
It is a small amount, but if I am liable for taxes and penalty, I would not do this until they guarantee in writing that they would pay any taxes due.
Any insights from professionals? Thanks!