Forums

401K distribution letter to ex-employee
Benefits & Compensation
401K distribution letter to ex-employee
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We have an ex-employee who was terminated from the company several months ago. We have a 401K plan, and this individual's investment account, which has over $5K, is still active. This person left the
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId31405

Forums » Topic Forums » Benefits & Compensation » 401K distribution letter to ex-employee

You must be logged in to contribute. Log in | Register
 
Forums  »  Topic Forums  »  Benefits & Compensation  »  401K distribution letter to ex-employee

401K distribution letter to ex-employee

posted at 4/20/2006 10:59 AM EDT
Posts: 3
First: 4/20/2006
Last: 3/30/2007
We have an ex-employee who was terminated from the company several months ago. We have a 401K plan, and this individual's investment account, which has over $5K, is still active. This person left the organization without any notice, so we were unable to explain to them their post-employment 401k plan options (e.g. keep the money in the account, request a distribution, rollover, etc). Does anyone have a sample/generic letter to mail out to an ex-employee advising them of their options relating to their 401K accounts? I have the 401K plan distribution form but need some type of cover letter to accompany it.

Thanks in advance!
New post Reply to this post

401K distribution letter to ex-employee

posted at 4/21/2006 7:15 AM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
Check with your money manager or TPA (third party admin). They should have a standard basic letter/instructions for a terminated employee. Mine provided one to me in my administrative guide. I would give you a copy, but it is copyrighted to them.

If they don't, I would keep it very basic with the options and how to access each (i.e. use your PIN on the www.retire.com website to keep track of your investment and balances or call 1-800-retire2; submit this distribution form to HR, fax to fund manager, etc if you want a distribution; if you want to rollover, provide place and account information, etc.)

And make sure to send the Tax Notice Regarding Distributions. It has some good information in it to let them know what their choices are.

rr
New post Reply to this post

401K distribution letter to ex-employee

posted at 5/6/2006 4:30 AM EDT
Posts: 198
First: 5/6/2006
Last: 8/29/2011
If you are still interested, I have a letter I can send you. We no longer have to do this because our our 401(k) investment company does it for us, but I still have the letter on my hard drive.

Cathy
New post Reply to this post

401K distribution letter to ex-employee

posted at 5/6/2006 5:15 AM EDT
Posts: 3
First: 4/20/2006
Last: 3/30/2007
Cathy:

Thank you so much for the kind offer. I would love to see a copy of the letter. Please email it to me at blondeguy9993@yahoo.com

Thanks in advance!
New post Reply to this post

401K distribution letter to ex-employee

posted at 5/9/2006 11:46 AM EDT
Posts: 198
First: 5/6/2006
Last: 8/29/2011
R1976, Did you get my email? I sent it from work today and hope the attachment went through. If you use this for any purposes other than just viewing, please remove the letterhead. Thanks.
New post Reply to this post

401K distribution letter to ex-employee

posted at 7/18/2009 1:06 PM EDT
Posts: 1
First: 7/18/2009
Last: 7/18/2009
Cathy,
Appreciate if you could also e-mail me the 401K distribution letter for ex-employees to dbates@pinnpointe.com.

Thank you
New post Reply to this post

401K distribution letter to ex-employee

posted at 7/18/2009 4:55 PM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
Junebug,
this message is more than 3 years old.... you might start a new request. And you would probably get something a little more updated. I actually have one now too....so I will try to remember to post it on Monday or Tuesday.

rr
New post Reply to this post

Re: 401K distribution letter to ex-employee

posted at 11/27/2012 4:28 AM EST on Workforce Management
Posts: 8
First: 11/27/2012
Last: 12/13/2012
If you are looking for a 401k distribution letter, you can get it from
http://www.401kgps.com/distributions-options.aspx
New post Reply to this post

Re: 401K distribution letter to ex-employee

posted at 11/29/2012 6:13 PM EST on Workforce Management
Posts: 148
First: 9/20/2011
Last: 12/12/2012
In Response to Re: 401K distribution letter to ex-employee:
If you are looking for a 401k distribution letter, you can get it from http://www.401kgps.com/distributions-options.aspx
Posted by marketgoal


SIX YEARS TOO LATE...............
New post Reply to this post

Forums » Topic Forums » Benefits & Compensation » 401K distribution letter to ex-employee

Daily Q&A

How to Address Flagging Motivation?

How do I increase motivation levels in the department? How do I brand my business unit as an attractive place to work? I have top-notch IT professionals in my business unit who feel they are "children of a lesser God" because they are non-billable resources and do not get plum postings abroad, nor the glamour that goes with them. As a result, their motivation suffers.

—-- Feeling Their Pain, human resources generalist, software/services, Mumbai, India

Read Answer

Stay Connected

Join our community for unlimited access to the latest tips, news and information in the HR world.

  • Workforce Technology (Bi-weekly)

    Covering the latest technology trends, tools and applications that are shaping the workforce in the 21st century. Delivered the 2nd & 4th Thursday of each month.

  • Dear Workforce (Bi-weekly)

    See what HR professionals are asking, and what Workforce Management experts are saying. Delivered the 1st and 3rd Thursday of each month.

  • Workforce Benefits (Weekly)

    Stay current on all aspects of employee benefits, from health care to retirement issues. Delivered on Wednesdays.

  • Workforce Week (Weekly)

    Free weekly update on the trends in HR and new tools added to Workforce.com. Delivered each Tuesday.

  • Workforce Talent (Monthly)

    See the recruiting, talent development and retention strategies of top companies and get the resources for effective talent management. Delivered the 2nd Monday of each month.

  • Workforce Training (Monthly)

    Stay current on the latest strategies and resources for training and developing your workforce talent. Delivered the 3rd Monday of each month.

HR Jobs

View All Job Listings

Search