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My Company changed their 401K platform due to a partner split. Prior to this change I took out my portion and rolled it into an IRA. Two months later when they rolled all other employees amounts over to the new platform they had the numbers wrong and added my previous amounts to it. What are my legal options here? They want me to roll it back over to the previous partners account. Will I have penalties doing this? This was their error.

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  • "I took out my portion and rolled it into an IRA." - Did you 'request' this, or was it actually completed? – JTP - Apologise to Monica Jan 13 at 12:38
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    Yes, this was requested and it was complete. 1.5 years ago. Into a money market. The current 401K has been sitting in the account for over a year and now this company is merging with a big corporation and the current 401K with the error is causing issues and they are requesting me to relinquish the amount they falsely put in. – Tina Perkins Welker Jan 13 at 13:16
  • Are you saying that when the 401k was moved you had your account value rolled into an IRA and also moved into the new 401k, effectively doubling your money? – Matt Jan 13 at 15:33
  • Yes Matt my money is doubled now and in two different platforms. They want me to reverse the one that was done in error but it’s completely in my name legally. I am concerned of penalties because the IRS thinks it’s my money!!!! – Tina Perkins Welker Jan 14 at 15:25
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My Company changed their 401K platform due to a partner split. Prior to this change I took out my portion and rolled it into an IRA. Two months later when they rolled all other employees amounts over to the new platform they had the numbers wrong and added my previous amounts to it.

If they made an error in your account they probably also made an error in somebody else's account, otherwise the total value wouldn't have matched.

What are my legal options here?

Contact your company and the old and new platform. Politely demand that they resolve the issue, without you having to move funds.

They want me to roll it back over to the previous partners account. Will I have penalties doing this? This was their error.

This should not cost you any money to resolve. The corrective actions should not impact your taxes, or you ability to contribute the amounts you want into your 401(k) or IRA. If they propose any action that would cost you money or have a tax impact, demand a better solution.

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