Personal Finance πŸ“‘ r/personalfinance by r/personalfinance Β· Wed, Apr 1, 2026

401K held hostage by former employer for 10 years

So, 10 years ago I had a falling out with a former employer. There has been heavy animosity on the part of this employer since I left. When I left I had a small balance in a 401k. It has since grown to approximately $16k. The account is held by principal. Since I left I have tried to get principal to see that I am no longer employed there but they will not accept anything. They say the company needs to inform them. They also state that they have reached out to the employer regarding this but all communications have been ignored so there is nothing they can do to release it. At one point a lawsuit involving myself principal and my employer was initiated by my employer but ultimately dismissed as he tried to claim the money was his. Yet principal STILL states they can’t verify I no longer work there. I am not looking to cash out, I am just looking to roll it over into my current 401k. I just want it out of their hands and the control passed to me where it belongs. So my questions are: Are there better questions I should be asking or demands I should be making of principal? Contacting the employer myself is a nonstarter because he will simply ignore it. Is this even anything a lawyer can help with? I don’t want to go that route as that would most likely eat most of my balance in legal fees. submitted by /u/Zealousideal_Tart206 [link] [comments]

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