Left job - Not allowing 401k rollover until next year!?!?!?
My wife recently switched jobs. She was employed at a small crummy college that is under an umbrella company that operates multiple schools. She had a 401k, so I set up a free fidelity IRA account and told her to call her old work and have it rolled over. She was forwarded to the administrator at "corporate" and this was the response:
The 401k plan is a trustee directed plan and as such all of the monies are in one account. At the end of the calendar year a third party values the plan in total and then puts a value on each individual’s amount. Anyone who left employment within the calendar year will be mailed a packet in January that will explain your options and also include the necessary forms that might need to be completed. Checks are then cut in February. Please let me know if you have any further questions.
Is this legal, or is there any way I can force them to let us roll it over? This seems really stupid... if you left on January first they would have your money for over a year! In 5 years working there all she would get is a yearly statement, no possibility for access/visibility, etc.
Thank you in advance for anyone that can offer any insight!