Can i use 401k funds to pay tax penalty on late rollover?
I was self employed, had both a SEP and 401k rollover. I took a job, requested distribution from my financial planner. Checks were sent to me directly without the tax deduction. Multiple checks were sent over a four day period to disperse the total amount $220,000 ish.
I forgot about the checks, deposited them in a bank IRA money fund, but I missed the 60 day rollover requirement on one check, $55,000, by one business day.
If I have to pay penalty and taxes on the amount of that single check, can I use the money I rolled over? (In essence taking it back out of the IRA money fund, or will I have to find another source of cash to pay the IRS?
Last edited by sheri : 02-26-2011 at 03:02 PM.