Without notice or warning, I received a forceout distribution (<$1,000) from a 401(k) plan from a former employer's plan. The check was dated 1/3/05. Today is approximately day 66 (since the date of the check, not since received).

The check was rendered uncashable due to the actions of a pet. I intend to request a replacement check from the issuing trustee.

Will I be able to roll the funds into an IRA within 60 days of the reissue, or am I out of luck due to the passage of time since the original distribution.

My gut feeling is the IRS will have no way of knowing as the successor custodian of the funds will only see the new check date and the prior custodian will only report the year of the distribution. But what is the official rule here?

Also, I have not yet contacted the check issuer. Should I expect any kind of resistance to a request to recut a check? I can provide the remnants of the initial distribution check if asked.

Thank you for your thoughts,
Jonathan

Go for it.


If they reissue the check, presumably with a new date, use that to document your rollover.

BTW, if you got a check, it should have had 20% federal income tax withholding. If so, it should identify the gross, the withholding, and the net. (Don't assume; verify.) You can rollover any amount up to the gross.

State tax laws vary.

www.irs.gov. Look for Publication 590.

You cannot get a rollable distribution without warning, maybe unless it is $200 or less. You should claim that you never received the tax/rollover notice and that you do not want to receive the distribution until you have have a chance to read the notice and give instructions concerning the distribution. If the plan is smart, it will send you the notice and then you can decide what to do. The clock should start over.

Correct. However, the plan may be able to demonstrate that it did provide such notice, in which case, your "damaged check" scenario may provide a better solution.

I don't presume that plans are looking for a fight, but I suppose that a plan might refuse to cooperate if it had withheld amounts and does not want to deal with the adjustment, e.g. if the recipient elects a rollover. If the plan will simply cut a new check, the plan would then still take the position that the distribution occurred when the distribution occurred, not when the new check was issued.

If the plan will acknowledge and fix a problem with notice, even if it can show it is not at fault, I think that is firm ground. While the practical risk of problems with a new check is low, the only way to be sure about the outcome under these facts is to get an IRS ruling. I am not aware of any free pass on destruction of a check, but the IRS should be sympathetic in its ruling position.