My 73 year-old client retired from a public library in December 2019, and in March we submitted a form to the plan to execute a Direct Rollover to an IRA. We received a response that the rollover will not be processed until after the end of the current plan year, which is June 30th. We were also told that the distribution won’t likely occur until the Fall, since it takes a while to settle out a plan year.

In my 35 years of practice, I have never heard of a case in which a retiree had to wait months to receive a rollover of their nest-egg. Imagine someone retiring in July, learning that they couldn’t get their assets until after the following June 30th! My client needs a monthly distribution from the IRA to satisfy their monthly cash flow needs.

Has anyone else encountered something like this???