Farrell: What are your options with a 'frozen' 401(k)?

  • Article by: CHRIS FARRELL
  • Updated: March 8, 2014 - 2:00 PM

Q: My 401(k) plan was terminated and assets frozen when the company was sold close to a year ago. What is a normal and reasonable period of time for the plan to be frozen? I’m eligible to be making withdrawals; what happens if it is still frozen when I am required to make mandatory required distributions? Are penalties for failure to do so rescinded due to the circumstances? Is there any recourse for accessing my funds? This is one risk I seldom see addressed in the discussion of 401(k)s. Thanks, Mark

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