Tax/401k question

[mrsklamc]

I don't think there's any way out of this for her, but...

A friend's company stopped offering a 401k plan. She rec'd a check and did not roll it over within 60 days, so...she's stuck paying taxes and penalty, right? I don't think there's any way out of it but just thought I'd ask.

I've only rolled one over once, and it was very clear on the check or the paperwork that came with it that it had to be done within 60 days so I'm not sure how she missed it.

 

[eliza61]

I don't think there's any way out of this for her, but...

A friend's company stopped offering a 401k plan. She rec'd a check and did not roll it over within 60 days, so...she's stuck paying taxes and penalty, right? I don't think there's any way out of it but just thought I'd ask.

I've only rolled one over once, and it was very clear on the check or the paperwork that came with it that it had to be done within 60 days so I'm not sure how she missed it.

Did she cash it? I've never rolled over one but my understanding was it had to be within 60 days (or was it 90).

My thinking is maybe if she still has the uncashed check and she went immediately to a bank or brokerage and opend up an ira, maybe there would be a way to wave the penalty.

can she check with her company?