401K

[Tykimeister]

In 2022 I started a temporary job that offered a flat rate with no benefits of any kind. This job lasted 8 months. I found out after this that the company was making contributions to a 401K account in my name. I believe it was some type of default percentage of what I was making, but wasn't a match since I never made contributions to it. I don't believe it was on any of my pay stubs, I comb through those fairly closely.

Anyways, I kept my mouth shut and just left the account alone. It has been 8 months since I left that job and they finally took the money back, probably noticed the error. My question is, can they just take the money out like that without offering an explanation of some type? I tried to look at the present and past statements but they are blocked for me to see them. I could try calling but I suspect they will have some type of generic response and I already know it was an error. I was just curious if anyone else had a similar thing happen to them or if I am missing anything in regards to this.

 

[Al18]

It’s been my experience that if you are not employed for at least 1 year, you loose all of the company money

 

[pb4uski]

Are you sure that it was a mistake? My prior employer had a defined contribution plan in addition to the 401k that was similar to the 401k but was non-contributory. They contributed x% of my pay and I selected what the balance was invested in.

When I retired I was able to roll it into my traditional IRA.

 

[aaronc879]

It’s been my experience that if you are not employed for at least 1 year, you loose all of the company money

Depends if the match is fully vested immediately. I think most are now days. I have had multiple jobs where I worked well under a year and I got to keep the match in full because it was vested immediately after going into the account.

 

[Tykimeister]

It’s been my experience that if you are not employed for at least 1 year, you loose all of the company money

Didn't really think about that. I would have to check what their vesting rules are. Since the position offered no benefits I just assumed the company decided to collect the money they mistakenly made contributions on.

 

[Tykimeister]

Depends if the match is fully vested immediately. I think most are now days. I have had multiple jobs where I worked well under a year and I got to keep the match in full because it was vested immediately after going into the account.

Ok I just checked again and it is letting up look at the forms now. I wouldn't let me yesterday.

It's a 401a plan that the money was taken from. Roughly $1648. Would I just need to check with the company and find out what their vesting schedule is?

 

[Tykimeister]

Are you sure that it was a mistake? My prior employer had a defined contribution plan in addition to the 401k that was similar to the 401k but was non-contributory. They contributed x% of my pay and I selected what the balance was invested in.

When I retired I was able to roll it into my traditional IRA.

The account was actually a 401a. Would you suggest I check with transamerica about the vesting rules or should I reach out to the former employer?

 

[Morgan22]

The account was actually a 401a. Would you suggest I check with transamerica about the vesting rules or should I reach out to the former employer?

You could just check with transamerica.
I had a 401a plan from my last employer. The vesting schedule was 3 years. But vesting can vary by employer.