Does anyone have any information about 401k after lay-off, like what will happen to your 401k if you have worked for less than 3 years ? Are they gonna give you the money that has not been vested yet? I could not find this information in the severance section of the new 2019 benefits.
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I know about other corporations ( fortune 100) who actually gave their ( corporations) portions of 401k to the laid off employees even when the employee didn’t complete the required 3 years (vested ) period. So I guess the policy varies among corporations. While some can be really generous, others might be .......
I joined GM in late 2017 and got a decent chunk of relocation. Do I have to return that too?
I contacted HR directly about this question, and no, you don't get to keep GM match/contributions to your 401K if you leave before 3 years of service. But yes, it will still appear in your Fidelity 401K as "unvested" for probably a few years, maybe as many as 5 years. And, although it is unlikely, if you do come back to work at GM before your unvested money somehow "expires", your previous years of service will actually count towards your total 3 years of service. For example, if you had worked at GM 2 years, got laid off, and then came back a year later, you would only have to work one more year, and then you would get to vest all of your GM match/contributions, both from your first employment and second employment. I know this because I have a coworker who was in almost that exact situation, except that he didn't get laid off, he just left for personal reasons after his first period of employment at GM, and then he came back a year or so later, and his 401K now says he is fully vested even though he's only been here 1.5 years.
Exactly. They will be gunning for people who got the VSP letter. I think a lot of people are panicking over nothing. They were already deemed expendable when they got that email.
As the current plan is only to lose 15% including the VSP people I can't see how that would be relevant.
You should be able to transfer the money you contributed to another fund (e.g. Vanguard, Fidelity) if you wish not to leave it in the Fidelity GM account.
There is an IRS provision that will vest the unvested portion of a qualified plan in the event of what is defined as a partial plan termination. However it requires that at least 20% of plan participants are being involuntarily terminated.
More info here: https://www.irs.gov/retirement-plans/partial-termination-of-plan
You will lose the GM contributions. GM will actually leave the money in your account for an indefinite period of time but you won't be able to touch it. Why? I have no clue and neither does the GM Benefit Service Center. This makes about as much sense as much of what goes on at GM (not much).
Nothing gets vested until you finish your 3rd year so you would only keep what you contributed.