Employer deposit $8600 in 2007 by error to my 401k

[Moreade]

My previous employer requesting an amount of $8600 plus the market gain this amount was deposit on 2007 and no one realize this error including my self until 2013, I agreed to refund the $8600 but I don't feel like paying more than it was deposit, what action the employer able to take to force me to pay another $3000 or more on top of the $8600?
Thanks

 

[Betty3]

Someone may come along who knows more about 401k's than I do. This information is just per a reference: Yes, they can ask for the market gain back - the gain was not made on your money. You would be profiting on this error where you should not be.

I assume they could sue you for the additional amount & see what a judge decides.

 

[Moreade]

Even with a 6 years statue of limitation in the state of CT?

 

[army judge]

Even with a 6 years statue of limitation in the state of CT?

If the SOL has run, that should eliminate any civil actions. Unless you are served with a court summons or subpoena you aren't required to respond to any other correspondence. If you know the six year SOL has run, I'd advise you to do nothing, unless you are subpoenaed or summoned by legal process.

 

[Betty3]

Are you sure there is a 6 year SOL for this situation? I don't have that information. It is noted that if you keep the money, there could also be IRS code & regulations involved for this situation that are being violated. You can talk to a CPA or tax attorney & see what they say. It is your decision to wait & see if you are served by a court.

 

[mightymoose]

The SOL is not from the date of occurrence, rather the date of discovery. It seems the company likely has a solid claim if they only recently found out about the over payment.

 

[Betty3]

That's true, mightymoose, & a good point. The error was just realized in 2013.