I have a 401k with John Hancock. I recently received a letter telling me what the MD is for 2009. I contacted them to tell them about the law that Bush signed waiving the MD for this year.
They told me that accepting the waiver is "optional" for the Plan and that JH decided that the MD for 2009 was still mandatory.
They're nuts, right?
I don't know who to contact about this or how to prove to them that they are wrong.
Or - are they right?
No, you are if you leave your money there. Can you roll it over without incurring some sort of fee?
This is actually my husband's 401k and he refuses.
This makes no sense, especially for John Hancock. The change in the law allows a taxpayer to forgo taking their RMD. There is nothing in the law change that says anything is optional for a plan. This comment has come up before and what I have discovered is that many plans are informing their members that if they have set up automatic distributions of any kind (monthly, quarterly, once a year, etc.) that distribution will take place in 2009 unless they inform the plan to suspend it.
Their lawyers haven't issued the memo yet. Hope they do.
Meanwhile if you receive a distribution, within 60 days roll it into an IRA. That may be the best you can do.
good idea. thanks
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