60 day rollover redo?
I think I know where this is going, but wanted to get input from some experts:
Someone had an old 401k that was automatically cashed out and mailed to them (separated from service early 2023). They received the 1099-R yesterday showing that the funds were distributed along with tax withholding (under 59.5, so also the extra 10% penalty).
The issue is that they never received the check or notification of the automatic distribution (change of address, that was later updated… so they got the 1099 but not the check or prior notifications). Apparently the check was issued in August 2023, but since they never received it, the 401k company is going to reissuing the check.
Any chance a 60 day rollover would still apply or are they out of luck? Can they do a 60day rollover from when they get the replacement check or more specifically based on the date of the replacement check or is it based on when the 401k says the money was originally out of the account (i.e. the date of the original August check) even though it was never received / never cashed?
Permalink Submitted by David Mertz on Wed, 2024-01-24 20:14
This would seem to qualify for self-certification that the rollover would qualify for a waiver of the 60-day rollover deadline under IRS Rev. Proc. 2020-46 with reason 3.02(2)(b), “the distribution, having been made in the form of a check, was misplaced and never cashed.”