The renowned expert Ed Slott puts it this way:
https://www.irahelp.com/slottreport/retirement-plan-checks-and-60-day-rollovers
Generally, when you receive a check from your IRA custodian or employer plan, you have 60 days to rollover the funds to another retirement account, either an IRA or an employer plan. As with most retirement plan rules, this rule comes with two exceptions – one good and one bad. Let’s look at what happens when Lori receives a check.
Checks Payable to the New Retirement Account
A check that is payable to Lori must be redeposited in a retirement account by the 60th day after the receipt of the check. But Lori does not have a check payable to herself. She recently changed jobs and wants to move her 401(k) funds to an IRA. Her employer sent her a check payable to her IRA custodian fbo (for benefit of) her IRA account. Lori cannot cash this check; she cannot use the proceeds from this check; Lori can only forward this check on to her IRA account.
This type of check is considered a transfer or direct rollover of her funds from her employer plan to her IRA. This transaction is not subject to the 60-day rollover rules. If Lori puts the check in a drawer and forgets about it for three months, she can still forward that check to her IRA custodian.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
