401k check mailed to me
A nice surprise!
If you've received a 401(k) check in the mail, it's likely because you've reached a certain age or have terminated your employment with the company that sponsored the plan. Here are a few possible reasons why you might have received a check:
- Required Minimum Distributions (RMDs): If you're 72 or older, you're required to take RMDs from your 401(k) plan each year. The plan administrator may send you a check for the RMD amount.
- Plan termination: If your employer has terminated the 401(k) plan, you may receive a check for your account balance.
- Account closure: If you've closed your 401(k) account or rolled it over to an IRA, you might receive a check for the remaining balance.
- Plan loan repayment: If you had an outstanding loan from your 401(k) plan, you may need to repay the loan amount, which could be sent to you in a check.
Before depositing the check, make sure to:
- Verify the check: Ensure the check is legitimate and from your 401(k) plan administrator.
- Check the amount: Verify the amount on the check matches your account balance or the RMD amount.
- Consider taxes: You may need to report the distribution as income on your tax return. Consult with a tax professional or financial advisor if you're unsure.
- Consider rolling over: If you're not ready to take the distribution, you might consider rolling it over to an IRA or another qualified plan to continue growing your retirement savings.
Remember to keep the check and any related documentation in a safe place, and consider consulting with a financial advisor if you have questions or concerns about your 401(k) account.