plan disbursement

I have a client who’s 401k failed its testing and she received a check for her Roth contribution. The distribution code 1=8 and distribution code 2= B. Can she deposit this into her existing Roth as a rollover under the 60 days from distribution date. If not will she be subject to a 10% penalty, she is under 59.5. Thanks



  • This distribution is not eligible for rollover.
  • This distribution is not subject to any early-distribution penalty.
  • She can make a regular Roth IRA contribution if she qualifies, but that would be independent of this distribution from the 401(k).


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