Discussion:401k not rolled over within 60 days

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Discussion Forum Index --> General Chat --> 401k not rolled over within 60 days

Taxnewbie (talk|edits) said:

21 March 2007
I have a client who received a 401(K) distribution in early 2006 but did not cash the check, did not roll it over. Will this be taxable income for 2006 even though she hasn't cashed it? This is a new one for me so I wanted to be sure. Thanks!

Kevinh5 (talk|edits) said:

21 March 2007
If she sends the check back and has them re-deposit it (I lost the check and just found it) and asks for a corrected 1099-R, this might work to get it not distrubuted in 06. Otherwise, good luck.

Taxnewbie (talk|edits) said:

21 March 2007
My mistake...she received the distribution in 2005 and she also did not file her tax return for 2005 (okay if she is to receive a refund but I think she will have to pay). I'm not sure if she received a 1099-R or not but what is my next move?

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