Retirement tax questions


@angeladeets wrote:

Thank  you so much.  Is he able to cash the check and return a portion within 60 days to avoid the tax/penalty?


I apologize.  While I said "in general", hardship withdrawals can't be rolled over.  I suppose that you don't really have an immediate financial hardship if you are just rolling the money over to a different investment.

https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants...

 

At best, the entire amount has to be returned, and then the employee could request a smaller amount.  At worst, the employee is stuck with what they requested.  I will try to find out more, but we can also wait for @dmertz  who is our definitive authority on this forum.