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Level 2
February 9, 2020
Solved

2020 401 k withdrawal in error

  • February 9, 2020
  • 2 replies
  • 34 views

i withdrew $10k in January 2020 and then found out that i qualify for RMD deferral until 2022 with passage of law in December 2019.  This withdrawal bumps me into higher income tax bracket.  is there anything i can do to correct this?

Best answer by KarenM90

Yes.  Generally you can rollover those funds within 60 days (so the clock is ticking) to another similar account without any tax consequences. 

 

You should start by contacting the plan administrator from the plan you took the money from and see if they can help.  Or contact your broker, bank, or investment advisor and see if they can get something set up before the 60 days runs out.

 

Here is a link to the IRS Resource guide on 401Ks:  401k Resource Guide.

 

 

2 replies

KarenM90Answer
Level 11
February 10, 2020

Yes.  Generally you can rollover those funds within 60 days (so the clock is ticking) to another similar account without any tax consequences. 

 

You should start by contacting the plan administrator from the plan you took the money from and see if they can help.  Or contact your broker, bank, or investment advisor and see if they can get something set up before the 60 days runs out.

 

Here is a link to the IRS Resource guide on 401Ks:  401k Resource Guide.

 

 

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mo20Author
Level 2
February 10, 2020

Muchas Gracias!

 

printed IRS reg and contacted brokerage firm.  all fixed in rollover!