My spouse recently received an automatic pension distribution from her previous employer (the pension is new for this year so the payout was modest). According to the plan administrator, she's eligible to utilize the IRS's 60 Day Rollover Rule for this distribution and deposit it into an IRA or a existing retirement plan.
Since taxes were withheld on the pension payout, I assume she can deposit the full taxable amount into her existing 401k? Does she simply deposit the check into her bank account and then transfer the full taxable amount from her bank account to the 401k? How is this transfer reported on her taxes when we file (MFJ)?
