Was anyone overpaid in their 401ks by Citrix? I was overpaid by $805 and they sent a letter to transfer it back to them using a fidelity address
With all of the turmoil going on, I’m thinking of just ignoring it and see if they just send me a 1099.
Thoughts?
I received such a letter around the end of August. My amount was $380. At first I thought it was a joke. A company that hands out large severance packages and golden parachutes wants me to return $380 along with interest/gains/losses? Really? Then I thought about it and figured this must be one of their pathetic attempts in trying to reduce that debt they have been trying to dispose of. In order for you to get a 1099, you have to take a distribution from a retirement account. So if you never request a withdrawal - there should be no 1099. Now - I assume Citrix is going to file something at tax time to indicate these overpayments. I would also assume this will trigger the IRS to look for those overpayments in the individual tax returns. So there is a risk that you could end up being audited if they don't see that amount claimed on your tax return by a 1099. As for the interest/gains/losses part, I really question whether they have legal standing over that money. This overpayment was not a loan and there was no contract saying they were entitled to any gains or losses from that payment. I would ignore that part and only pay the amount they overpaid.
Previous poster - How do you get a refund if you are overpaid? Hmm
And the OP said he left already.
Interesting situation you’re in. I’d sit and wait to see what happens. They have bigger problems on their hands. Transfer the money out of Citrix 401k and into your own ira