The company my husband works for was sold on August 8th. He is fully vested in the 401K plan at the company. What is the time limit in which the company can hold his 401K plan before releasing it? When he calls the investment company they are telling him he is still listed as an active employee of this company which no longer exists.

Also the employees were offered a retention bonus if they would stay employed, until November, with the new company that had purchased the old company out. The employees were never told that by accepting the retention bonus they would have to sign over their annual bonus they had earned during the year, and any other monies the company owed them. He later found out their annual bonuses were included in the purchase price. So the money is there the company just wants to keep it.

When my husband went to the orientation meeting for the new company he was informed the new company had bought the old company for the workforce and intended to sell off most of the property acquired during the acquisition.

I can understand that this is a frustrating situation for you and your family. I would suggest that your husband speak with the local labor board. They will be able to answer your questions. The fact that the company was bought out doesn't necessarily mean that it doesn't exist anymore though.

We are missing the issue. The 401(k) plan is mutually execlusive of the company. The plans terms and provisions are governed by the plan document which is governed by a dozen or more Federal laws. If the company was sold, that alone doesn't mean the 401(k) plan has terminated. You should have a summary plan description booklet. This booklet is a narative of the plan and outlines your rights under ERISA. If you don't have a SPD booklet, send a letter via Certified Mail to the HR department of the company requesting a SPD booklet, the latest Summary Annual Report, a copy of your most recent participant statement and a statement asking when your benefits will be paid. If they do not respond within 30 days in writing with the requested information contact the U. S. Department of Labor EBSA Department at their regional office in Dallas TX and inform them of your plight. They will investigate if the plan sponsor doesn't respond timely and you may have rights to collect damages against the plan sponsor.

This is the correct answer.