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Personal Investments • Received check from old 401k

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I received a small check from an old 401k that has been closed (<$25). I rolled the rest of the 401k into a Rollover IRA last year, so I can only assume this is interest/dividends $ that did not get captured in the initial rollover. Anyway, the check had about $4 withheld for taxes. I am under 59 1/2 and would be subject to 10% withdrawal penalty. I realize that either way this is a small amount of money and isn't going to move the needle much, but I would like to avoid the penalty if possible.

My first thought is to deposit this check into my rollover IRA to avoid the penalty. If I do that, what happens to the withheld portion? Will that be returned in the form of a tax refund? Will any penalty be applied to that? The rollover IRA is held at Fidelity...can I use the Fidelity app and deposit the check directly into the IRA account?

Statistics: Posted by VintageBurst — Mon Dec 09, 2024 10:25 am — Replies 0 — Views 20



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