Report: #758232

Complaint Review: Great West Retirement Services

  • Submitted: Fri, July 29, 2011
  • Updated: Tue, April 24, 2012
  • Reported By: Rick Schu — Columbia Missouri United States of America
  • Great West Retirement Services

    United States of America

Great West Retirement Services When Great West Gets Your Money They Keep It Internet, Internet

*Consumer Comment: Early Withdrawals from Qualified Plans

*Consumer Comment: Same problems!

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With the economy being the way it is, a lot of people I know are pulling money from their 401K's & even the President saying if you feel uncomfortable with the economy & feel the need to pull money out of their retirement plans, then do so even though he would rather you not, I was going to try to pull money out of my 401K through my employer through Great West. And, they absolutely would not let me. It's my retirement money. If I want to get some out before I retire, then I should be able to. They kept quoting IRS regulations that it needed to be a qualifying reason. My wife preapred taxes for five years. She got on the phone with them & told them we weren't wanting a non-taxable distribution, & that we knew there would be tax consequences. Come to find out that it was their own rules that they would not let me take an early distribution. They were just trying to stand behind IRS regulations because it made them look better. They refused to let me have any money that I, myself have paid in. In the end, Great West takes your money & holds onto it extremely tightly, squezing every bit of interest they can get out of it & try to stand behind IRS regulations, when it is their own rules. They rip you off!
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#1 Consumer Comment

Early Withdrawals from Qualified Plans

AUTHOR: plan chairman - ()

In response to those plan participants who are of the opinion that it is "GWRS's" behavior in this matter, I can provide some guidance.  Retirement savings plans sponsored by employers retain the services of firms such as GWRS to administer the plan "they" - the employer has designed and put in place. 

The terms of early withdrawal or hardship distributions are made in accordance with the plan document and GWRS merely follows the withdrawal/distribution terms and conditions of the employer sponsored plan.

Therefore, complaints with regard to the hardship distribution or early withdrawal of funds from a 401k or 457 deferred compensation plan should be brought to the attention of the employer and the board of trustees or administrative committee of the plan.

IRS regulations with respect to hardship distributions for Section IRC Section 457 plans are clear and can be Googled for reference.

A suggestion might be to propose to the employer that a loan provision be adopted for your plan. You pay yourself back with interest and so long as the payments remain current until paid off, there are no contructive receipt of funds which would trigger a taxalble event.

I am chairman of the Administrative Committee for a $200,000,000 public agency Section 457 Deferred Compensation Plan and speak from my experience with this plan.

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#2 Consumer Comment

Same problems!

AUTHOR: blair - (United States of America)

I could really use some extra money this summer and was trying to withdraw my money from Great west Retirement only to be told that unless my employment is terminated or I retire that I can't get my money. If people want out, let them out. Don't use these guys, horrible customer service.
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