No. of Recommendations: 0
Need some help.

Recently, I received a 401K distribution check, payable to me, from my previous employer with 20% deduction... etc . ( I know, i know i should do a direct rollover... but... :-)


Here is a good article that addresses your question:http://401k.mpower.com/commentary/feature/feature_072400.xsp

Also, if you want to avoid all taxes and penalties, you must make up the 20% when you move it to the new 401K or IRA.

If you have time, you might tear up the check and tell the old employer to send it to the new plan or IRA custodian.

Good luck,

Dogpile :-P

Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement