NYC man lost $ 114,000 – its 401 (k) – Paychex was stolen after physical inspection and cashed

Dylan Handy did everything right – or thought.

Two years ago, when he was 33 years old, he tried to walk over 114,000 $ 401 (k) after passing favorable jobs. Instead of a safe digital transfer, paychex sent paper checks.

Unfortunately, these checks were caught for affordable and were false.

“This obsolete and unreliable method remains a standard practice in the pension industry,” he said. New York Times. Kicker? Electron did not say that the electronic transfer was an option. And even more importantly, he can now owe taxes in the stolen account.

Why do pension plan managers still use physical inspections? How can you protect your money and avoid ending in a handy situation?

2024 research by Capitalize Simply, how many people do paper checks during rolls – 43%.

Americans avoid patience. Over 80% of Sakers, 401 (k) should be as simple as the transfer of a rolling bank transfer. However, for those who are trapped by the hand process, telephone conversations often mean long-standing period and many uncertainty.

Why do plan managers engage in this obsolete method?

Physical checks continue due to inheritance systems, regulatory concerns and lack of standard digital choices.

In the work of Hardy, he now does not give any results in the federal court to banks without going anywhere and lost deposits. The lawyer claims that paychex is in charge.

Paper checks in 401 (k), including serious risks, including:

• Fraud and theft: Physical inspections are easier to catch, change, or withdraw money without permission.

• Delay and anxiety: Shipping checks may take weeks to make sure they clean them and make sure they reach the right hand – sometimes months. Capitalize that 42% of employees live two months or more.

• Lack of transparency: Watching paper checks and solve problems can be a nightmare. In case of fraud, it is a frequent complex and comprehensive process to restore responsibility and money.

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Protection as Employee Retirement Income Act (Erica) is available, these are limited.