I received a check from Fidelity for my 401K but I didnt ask for it.

Forum|Forum|7 years ago
May 31, 2019
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I worked at Starbucks up until the time that I started law school in August. While I was at Starbucks, I was contributing to my 401K each paycheck. Well, in December, I received a check from Fidelity as a cashout of my 401K. However, I did not request it and did not think anything was going to happen to it. So how do I reflect this on my taxes, or is it possible?

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Best answer by RogerM

What is the amount of the check you received? Sometimes, if you no longer work for a company, and the amount in your 401(k) is less than $1000, the investment company will automatically disburse the amount to you. In that case, it does have to be reported as taxable income.

But it usually does take them a few months to disburse the funds. One way to avoid this is to roll the funds over from the 401(k) into a rollover IRA after you leave a job.

R

RogerMAnswer

Employee

What is the amount of the check you received? Sometimes, if you no longer work for a company, and the amount in your 401(k) is less than $1000, the investment company will automatically disburse the amount to you. In that case, it does have to be reported as taxable income.

But it usually does take them a few months to disburse the funds. One way to avoid this is to roll the funds over from the 401(k) into a rollover IRA after you leave a job.