60-Day Rollover Violation?
Employee terminated employment and had the recordkeeper transfer funds to her new plan. The recordkeeper cut checks for her Roth and pre-tax accounts made out to the new custodian/recordkeeper (Matrix Advisors, FBO employee’s name). The employee left the checks in her drawer for 8 months. The checks are void after 6 months and she has changed jobs again.
Has she violated the 60-day rule, or does that not apply because she has not truly taken possession of the money?
Could she now do a direct rollover to an IRA without violating the 60-day rule?
Permalink Submitted by Alan - IRA critic on Fri, 2023-10-13 16:08
The 60 day time limit does not apply to direct rollover checks, but she will now need to request new checks from the plan to replace the void checks. They may charge a fee for this.