401k Withdrawal
I have a client that took a 150k withdrawal from her current 401k, still working. She had them withhold 30% for taxes. It was less than 60 days ago. Can she open a traditional IRA and deposit the 150k?
I have a client that took a 150k withdrawal from her current 401k, still working. She had them withhold 30% for taxes. It was less than 60 days ago. Can she open a traditional IRA and deposit the 150k?
Permalink Submitted by Alan - IRA critic on Thu, 2022-03-03 20:04
Yes, as long as this was not a hardship distribution. Of course, since she received only 105k after withholding she will need to come up 45k from her other funds to be able to report a full rollover.