Financial Information
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#2 written by Jeanne R 1 year ago
Sonny boy can get both himself and his Daddy into legal trouble with both the IRS and possibly the SEC. The fact that he is the plan administrator puts him under a fiduciary duty with respect to both the money in the plans as well as a duty to the participants in the plans. If Sonny boy wants to sue you in small claims court for the $ 192.00, that is his right but he cannot hold your husbands 401(k) hostage and that is what he is attempting. If I were you, I would give Daddy a call and ask him to fix this. He probably has no idea that this is even happening and he will fix it. If he gives you any grief then tell him that you will be contacting an attorney.
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Boy that was silly. What he did was illegal and he actually documented it! I would send him a letter, return receipt requested that very clearly states that 401k assets can’t be attached in that manner and that he has breached his fiduciary responsibility. Also that you expect the distribution to be processed within 10 business days or you will be turning the matter over to the US Department of Labor.
I would also cc (also return receipt requested) the employer himself/herself so that he/she is aware of what the son is doing. Doing so would make both of them personally liable for any fines that may result from their actions. (you could also include that in the letter).