401k distribution
I have a client who didn’t respond quick enough from a former employer so she received a check for the balance of her 401k less the 20% withholding. Is there a time frame that she has to roll over the remaining proceeds to an IRA.
I have a client who didn’t respond quick enough from a former employer so she received a check for the balance of her 401k less the 20% withholding. Is there a time frame that she has to roll over the remaining proceeds to an IRA.
Permalink Submitted by Alan - IRA critic on Thu, 2018-11-29 22:39
She must complete the rollover within 60 days of the date she received the distribution. She must also replace the 20% withheld from her other funds in order to make the rollover complete and avoid tax and penalty on the withheld amount.