NON COMPLAINT 401k

Submitted by Calogero Camilleri on Tue, 2020-08-18 18:40

I just received notice from my employer that our 401K was in Non compliance for 2019.

Am I able to rollover the funds into a Traditional IRA without any fees?

If not, what are my options to avoid any taxes and fees?

Thank you

Permalink Submitted by Alan - IRA critic on Tue, 2020-08-18 20:26

Didn’t the notice include info regarding your options and appropriate deadlines?

Permalink Submitted by Calogero Camilleri on Tue, 2020-08-18 20:48

No it did not

Permalink Submitted by Alan - IRA critic on Tue, 2020-08-18 23:29

The following is a general statement by the IRS regarding plan disqualification. It is up to the plan to determine the reason for disqualification and whether they are capable of correcting the error to have the plan qualified again. You should do nothing until the plan provides you with specific options. Your account may be frozen anyway.
https://www.irs.gov/retirement-plans/tax-consequences-of-plan-disqualification