alnstacy

[alnstacy]

What is the name of your state?What is the name of your state?What is the name of your state? Missouri
My husband left a company in late January in rehireable terms. However they are still paying him. Every two weeks he gets a direct deposit into our account. At first we thought they would "catch" the error because maybe the paperwork had not gone though yet. He has made 3 separate attempts to contact his manager and let him know that he is still on the books. We have pulled all of our money out of this account and only the company's money is in there. We are up to over $15,000. What are our rights regarding this money? We don't feel we should pay taxes on this money, especially if they fix the error and withdraw the money. What about his 401K? He was not contributing at the time, but is fully vested and needs to "roll" the money over into an IRA and the time has expired to the actual date of termination. What should we do?

 

[cbg]

Your rights to this money are non-existant. You need to pick up the pace at letting the company know this is happening; if you're not making any progress with his manager contact someone in Payroll or HR. Send a letter via registered mail. I wouldn't get too worked up about paying taxes on this money; you're not going to be keeping it.

As a bottom line solution, close the bank account and send them a check for the money in it. They'll figure it out when the money lands back in their own account. But send the registered letter FIRST. You want to have it on record that you made every effort to contact them about it.

I don't understand how the question about the 401k is connected to the overpayment. Please clarify.

 

[Beth3]

What about his 401K? He was not contributing at the time, but is fully vested and needs to "roll" the money over into an IRA and the time has expired to the actual date of termination. What should we do?

Time has expired??? Huh? If your husband has at least $5,000 fully vested in this employer's 401(k) account, he can leave it there as long as he wishes and roll it over into an IRA anytime he wants.

If he has less than 5K in the Plan and he failed to respond to the notice they sent him that stated he was required to direct how he wished the money withdrawn within 30 days, then the Plan Trustee will send him a check with 20% for federal taxes withheld. Your husband can still deposit that in an IRA and reclaim the withheld taxes on your year-end tax return.