Asked about 1 year ago - Bothell, WA
FlagMy work say that I'm only 40% vested in the plan though however New York Life (main corporate) says the money is in my name only. Is my former work entitled to any of the money since the check is in my name and so was the account? They say I have to cash the check in my name, then send them a check for the 60% that they feel is theirs. Is this common? Is this right? Am I legaly responsible to do this?
Most plans have two types of contribution, the contribution you make and the matching the employer makes. Your contribution is yours no matter what happens to your job. The matching your employer makes has a vesting requirement which obligates you to earn it over time.
Read the plan document and annuity contract carefully to confirm whether or not you are vested and at what percent. Then if your termination was not performance based you can try to ask for the unvested portion in the form of severance of some kind. Technically, they do have a right to keep the unvested portion.
However, on different note, read this article from Forbes on why you should not have a variable annuity in your 401k plan.
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