DH recently took a lump sum payout offer and his GM pension is now dust in the wind. We're rolling it over into his 401(k).
Today we got a notice stating that they'd be sending us a check as a refund of his after-tax contributory contributions.
I'll just quote it.
Payment #2: to you for any after tax contributions you made to the SRP after 1985 - this payment is eligible to be rolled over, but is required to be treated as a separate transaction.
This payment #2 is not a huge amount - in fact it's 1.4% of the rollover we're making. And as I understand it I have to do some rather complicated accounting when we start making withdrawals in a few years, correct?
I'm inclined to keep check #2 and do something out of character with it. Or maybe just put it in regular savings. But I want to confirm that there are no tax implications if we just cash that check, correct? But there would be accounting issues if we do roll it over with check #1, correct?
Thanks in advance.