![]() Lori has made the classic mistake that many non-spouse beneficiaries make. However, non-spouse beneficiaries, which is what Lori is in this case, are not allowed to do 60-day rollovers. This check cannot be redeposited into Lori’s inherited IRA.Ī check made payable to Lori from her own IRA can be rolled over within 60 days. Unfortunately, her mother’s IRA custodian sent a check payable to Lori, not payable to her IRA custodian fbo her inherited IRA account. She wanted to move her share of the inherited IRA to an inherited IRA with the custodian where she had her own IRA. Lori was a beneficiary of her mother’s IRA. In addition to changing jobs, Lori’s mother recently passed away. ![]() 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.Ĭhecks Payable to a Non-Spouse Beneficiary This transaction is not subject to the 60-day rollover rules. This type of check is considered a transfer or direct rollover of her funds from her employer plan to her IRA. Lori cannot cash this check she cannot use the proceeds from this check Lori can only forward this check on to her IRA account. Her employer sent her a check payable to her IRA custodian fbo (for benefit of) her IRA account. She recently changed jobs and wants to move her 401(k) funds to an IRA. But Lori does not have a check payable to herself. ![]() Let’s look at what happens when Lori receives a check.Ĭhecks Payable to the New Retirement AccountĪ check that is payable to Lori must be redeposited in a retirement account by the 60 th day after the receipt of the check. As with most retirement plan rules, this rule comes with two exceptions – one good and one bad. 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. ![]()
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