I did not rollover my 401k within the 60 days, what now. do i have time still with no penalties?

Question

I did not rollover my 401k within the 60 days, what now. do i have time still with no penalties?

Answer 1

it's all now taxable income (at whatever tax rate you end up at end of year when you add the full withdrawal to your income for the year - figure on losing 25-35% for taxes and penalty) plus the 10% penalty - if you were rolling it over, you should have had the 401k administrator send it directly to the new 401k plan or IRA - you never should have had the money go directly to you - now you can't put it in a tax deferred account anywhere - only regular mutual funds, where you have capital gains and dividend income to keep track of and pay taxes on every year

Answer 2

Nope, Uncle Sam gets to hold 20% for the year, and if you're under 59 1/2, then you permanently lose another 10%.

Not to mention the time value of the lost money.

Answer 3

You might still be able to do it if it was for valid reasons (ie bank error or something of the like).  But if was simply you forgot or didn't have time then you are out of luck.  You're going to owe the 10% penalty if you're subject to it.  Now the key is to avoid taxation on the balance.

how much was it?   If it was under the IRA deduction limit then simply make the contribution into an IRA.  If you're employed with a new employer change your 401k deduction to 100%.  You'll get 15k in that way (20k if you're over age 50).

anything more than that and you're out of luck.