ESOP Rollover
I have a company that had both an ESOP plan and a 401k. This company dissolved the ESOP and gave the employees the option of a distribution or a rollover into the 401k. (check made payable to 401 administer) Question is, a few employees received a check from the ESOP provider made out to them, which I know is a distribution,( and now decided they didn’t want the money ) however do they still have 60 days to roll this money into the 401k or their IRA’s if they so choose or is it to late once they get the check in their name from the ESOP holding.
Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2017-01-18 20:36
They have 60 days to complete an indirect rollover, but if they received cash there should have been 20% withheld and they would have to replace that 20% from other funds to make the rollover complete. They would have to call the 401k administrator to determine if the 401k will accept a rollover check. Former employees might have been eligible for NUA if they otherwise satisfied the lump sum distribution requirement.