Andre1969
Thinks s/he gets paid by the post
Hey gang, I figured I'd run this by you all and see what you think.
The company my uncle works for recently got sold and disbanded, and he now works for a new employer. He got a notice from his old employer saying that the 401k was going to be eliminated as well, so he had to either roll it over into an IRA or cash it out. He chose to roll it over. But the other night, he got a check in the mail for his entire 401k balance, minus about $19,000 in taxes. So instead of rolling it over, they accidentally cashed it out!
One of my friends said that if the witholdings for taxes have already been taken out, it might not be possible to get the company to undo their mistake and and set things right. However, he did suggest this route...
Write out a check for the original 401k amount, before taxes were taken out, and put it into an IRA. This means he'd have to borrow some money to make up that $19,000 difference, but between me and my grandma, we could cover him. Then, when he does his income tax, claim the $19,000 as an overpayment on his taxes, which will then be refunded to him. And then use that refund to pay back grandma and me.
So would something like that work?
The company my uncle works for recently got sold and disbanded, and he now works for a new employer. He got a notice from his old employer saying that the 401k was going to be eliminated as well, so he had to either roll it over into an IRA or cash it out. He chose to roll it over. But the other night, he got a check in the mail for his entire 401k balance, minus about $19,000 in taxes. So instead of rolling it over, they accidentally cashed it out!
One of my friends said that if the witholdings for taxes have already been taken out, it might not be possible to get the company to undo their mistake and and set things right. However, he did suggest this route...
Write out a check for the original 401k amount, before taxes were taken out, and put it into an IRA. This means he'd have to borrow some money to make up that $19,000 difference, but between me and my grandma, we could cover him. Then, when he does his income tax, claim the $19,000 as an overpayment on his taxes, which will then be refunded to him. And then use that refund to pay back grandma and me.
So would something like that work?