Hi guys,
Quick question for you all. I recently quit my job, and in the process rolled my 401k over to a third-party brokerage. My employer also sent me a check for a certain amount in addition to the rolled-over amount. Online, it's referred to as a "Nontaxable Credit Rollover." I know that while at my company some of my contribution was post-tax and some was pre-tax.
I'm wondering what I need to do with this check. Does the 60-day rollover rule apply? I've also read things about an 80%/20% tax implication, but I'm a bit confused TBH. How can I avoid getting double-taxed on this amount in the future?
I'd like to deposit it into my new 401k account along with the rest of my money that was rolled over, but my brokerage doesn't accept checks (Wealthfront). Is there any danger in depositing it into my checking account and then transferring it over? Tax/IRS implications?
Thanks for the help.
Quick question for you all. I recently quit my job, and in the process rolled my 401k over to a third-party brokerage. My employer also sent me a check for a certain amount in addition to the rolled-over amount. Online, it's referred to as a "Nontaxable Credit Rollover." I know that while at my company some of my contribution was post-tax and some was pre-tax.
I'm wondering what I need to do with this check. Does the 60-day rollover rule apply? I've also read things about an 80%/20% tax implication, but I'm a bit confused TBH. How can I avoid getting double-taxed on this amount in the future?
I'd like to deposit it into my new 401k account along with the rest of my money that was rolled over, but my brokerage doesn't accept checks (Wealthfront). Is there any danger in depositing it into my checking account and then transferring it over? Tax/IRS implications?
Thanks for the help.