Did I just get royally screwed?

[mAdMaLuDaWg]

A month ago, I filled out paperwork to forward my 401(k) balance from my previous employer to my new employer. Fast forward to this weekend, I get a check from my previous employer's 401(k) issued directly TO ME and it looks like Tax has been withheld (a whole lot too) although I specifically requested that the check be issued to my current employer's 401(k) plan in the paperwork.

At this point, I'm trying to get in contact with my previous employer to figure out what the hell happend.

Once a 401(k) trust issues a check, is there any way to reverse it? Man, I'm freaking out because I lost a lot of money.

 

[theGlove]

i think you get 3 months or so to deposit into your 401k, you should read up on it because im not sure myself

 

[DarkManX]

I went through the same thing recently, my prior 401k was through the same company as the new one and they still mailed me a check home and i had to mail it back... so just contact them to clear that up because i dont rememebr any tax being withheld.

 

[iRONic]

How long do I have to roll over a retirement distribution?

You must complete the rollover by the 60th day following the day on which you receive the distribution. (This 60-day period is extended for the period during which the distribution is in a frozen deposit in a financial institution). The IRS may waive the 60 day requirement where failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. To obtain the waiver in most cases, a request for a letter ruling must be made which include the applicable user fee. Refer to Internal Revenue Bulletin 2006-01 to get the Internal Revenue Procedure for requesting a letter ruling. A written explanation of rollover must be given to you by the issuer making the distribution. For information on distributions which qualify for rollover treatment, refer to Tax Topic 413, Rollovers from Retirement Plans. For information on the Direct Rollover Option, refer to Chapter 1 of Publication 590, Individual Retirement Arrangements (IRA's).

References:

* Publication 17, Your Federal Income Tax
* Publication 575, Pensions and Annuity
* Tax Topic 413, Rollovers from Retirement Plans

http://www.irs.gov/faqs/faq-kw7.html

 

[EKKC]

i think you can just request a rollover and get a check in its full amount into an IRA account or your current new employer 401k if they allow that. same thing and you won't be penalized

when i requested a check from my old employer's 401k company (Fidelity) I told them to make it out to my IRA account, so it was payable to my name but also had TD Waterhouse (now amertrade) on it. so I walked in to one of their offices and gave them my check.

but now you might have to reverse it

 

[spidey07]

Don't do anything with that check. I think if it touches your hands or name in anyway you're gonna get hit with a big penalty and taxes.

 

[Parkre]

Don't do anything with that check, except send it back. If you cash or deposit it, big penalities and it take a miracle to straighten it back out.

1.Send it back.
2. Call them up, explain what going on
3. Ask them to put your name AND the new 401K company name on the new check.
4. Give new company check.


So you haven't gotten screwed yet....unless you cashed the check.

 

[rudder]

when rolled over it should be the complete amount. I had the funds from a former employers ira account and they simply forwarded the funds to my bank in a seperate account. I then placed it with my current employer.