401k or Roth(no company match)

[suzie02]

Originally Posted by lindylou821

2 years ago i started working for a big company. I was offered to join a 401K plan and I did.

2 mos. ago several of us were sent a letter along with a refund ck from our 401k plan. We were told they we didn't quailfity for the plan and we were all sent our money that had been taken out with payroll deductions.

Skip ahead to this week and we all get a letter saying "oops sorry" we made a mistake and you really do quaifity for the plan so please mail us the money back!! Now we had all gotten a 1099 form for this money, this same money, our money that had been taken out of our paycheck.

So how can they say they want to back?? It was our money anyway..suppose we don't mail it back? Many of us already paid bills off with it. What can they do??

Need answers asap [please!!

Was it ever put into a 401k? If it was you need to replace it or you will have to pay penalties. What does your W2 show? Is there a difference between your federal wages and your social security wages?

[Ultrarunner]

Screw-ups like this happen... I wanted to roll-over my 401k when the company was sold... I was repeatedly told that it was not possible... even though my CPA said it was...

18 months later... the company said it goofed and we had to roll-over the money...

If it can go wrong... it will.