Remember my post about the High Cost of 401K Accounts? My blog must have a wider reach than I realize, because someone at the trust company took my advice, and I received a check in the mail.
Evidently, someone decided it was time to cash out my 401K and send me the proceeds. I was dismayed to learn that Federal tax was withheld, chewing up a third of my account’s value. And I didn’t request the distribution.
The notice said that the “distribution is based on the value of your account as of 4/19/10.” The check amount was for 2¢ and the Federal tax withheld was 1¢.
(If you’re scratching your head, the background on this account and the advice I gave is explained in High Cost of 401K Accounts.)
Evidently, someone finally noticed the low balance or added an edit to their monitoring program. Hey, it only took 3 years.
My favorite part of the notice was this statement:
You may be able to rollover your taxable amount to an IRA. If you have any questions, please contact our financial advisory department.
No thanks. I’d rather not wait another 3 years for service…
Check out another of my crazy, real-life experiences, except this time I’m getting bilked!
See Phony Charges (this time, it’s personal)