Okay...I work for a megacorp, which recently (1-1-07) changed the administrator of the 401k plan. Rep of new administrator comes to our office and explains plan, and investment options. I asked question about when/how one can take distributions. His answer was, after age 55, and after you are no longer an active employee, you can take periodic distributions as needed, without paying the 10% penalty, but you still have to pay the taxes, and we can set up an automatic system for you.
(401k rules allow this, but not IRA rules.)
Now that I'm ready, I find that megacorp has changed the rule, (without telling anyone) and will only make a lump sum payment. (all or nothing)
That only leaves the option of rolling over to an IRA, and having to set up a 72T, or pay the penalty, which is not really an option.
I feel like megacorp has deceived it's employees....(again)
How can they change critical rules such as this without notifying affected employees? It just seems so underhanded to me. Should I contact an attorney?
any thoughts? or suggestions?