60 Day Rollover
We had a client that ended up quitting her job and she never moved her 401K so they pushed out the funds.
The payment was Apx $114,000. They w/h 20% ($22,800apx) and she has a check for $91,528.
She wants to sell some of her stock she has outside to make up the tax difference so we can do a 60 day rollover.
Are we able to have the two separate checks go into an IRA and be coded as a 60 day rollover or would she have to get the proceeds from the sell of the stock deposit that and then write a check for the two amounts combined?
Permalink Submitted by PaulC on Wed, 2024-03-13 21:50
A rollover from a 401(k) to an IRA is not subject to the once per 12 month limit. Only IRA to IRA rollovers are subject to that restriction. Having two separate checks to complete the rollover transaction shouldn’t be an issue.