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volswagn · Jan 9, 2007, 11:48 AM

I'm hoping to find an answer to my question here... My wife closed out her profit sharing at her old company and for reasons I won't go into, we lost the check that was sent to her, and rediscovered it 90 days later (the check was written in October). Obviously we did not cash the check. Are we still over the 60-day rule for rolling this 401K into an IRA for her if we never cashed the check? I'd like to re-invest it, but if we're going to lose money over the 60-day period here, is there any drawback to just using it to pay off debt since we're going to have to pay penalties anyway?

Thanks for any help...

mrcart · Jan 10, 2007, 01:53 PM

I'm pretty sure the answer is that you haven't made the timely roll-over. As long as you had control of the money for the time which exceeded 60 days, it counts against you. I'll take a quick peek at the IRS web site and let you know.

ScottGem · Jan 10, 2007, 02:07 PM

MrCart is right. You are out of luck. The only thing you might do is contact the company say the check was lost and ask them to reissue.

mrcart · Jan 10, 2007, 02:09 PM

Here's a link to the IRS Pub 590 (look on page 22) which relates to the 60 day rule regarding the roll-over of IRAs. Publications Online The 401K is probably the same. You can look further to find the Pub at this site.

volswagn · Jan 10, 2007, 02:38 PM

Originally Posted by ScottGem

mrCart is right. You are out of luck. The only thing you might do is contact the company say the check was lost and ask them to reissue.

Thanks to both of you for the answers... I guess we missed it... I'd try getting them to re-issue the check, but trying to even get them to write it in the first place was a nightmare... Guess we're just going to have to suck it up and figure lesson learned...

Thanks again.

ScottGem · Jan 10, 2007, 04:55 PM

If you are forced to accept you will have to pay a 10% penalty and add the income to your 2006 taxable income.