Pension Rollover Inquiry
Hello
I have a client who had a rollover from his pension with the state of MA 2 weeks ago and now wants to bring it back. The client has a letter from MA saying they will except the funds, could we process it as a ROE send a third party check back? What would be the correct approach to return the funds?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2022-10-20 19:45
If the funds are now in an IRA, the plan would have to accept a rollover from the IRA, and there would be a 1099R from the pension and another 1099R from the IRA to roll the funds back. However, if the client has possession of the direct rollover check and the pension will accept a return of that check, it would be simpler since the IRA would not be involved. If the check was NOT a direct rollover check and included mandatory 20% withholding, this becomes more difficult since the withheld dollars may already have been transmitted to the IRS.