retirement rollover ten cent interest payment check

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Topic Author
tibbitts
Posts: 12562
Joined: Tue Feb 27, 2007 6:50 pm

retirement rollover ten cent interest payment check

Post by tibbitts »

In December 2020 I completed a rollover from a combination 401A and 457 plan to a 403b with a different provider. In December the previous plan provider mailed me two checks made out to the new provider, fbo me, and they were deposited to my existing 403b in late December. I thought the rollover was complete, but on January 1 2021 I received a check dated January 4 2021 for what is apparently a 457 interest rate payment: $.10. (ten cents.) Of course I'd rather just dispose of the check vs. paying to mail it, plus possibly have to fill out yet another multi-page form to deposit it (with the possibility of introducing errors), but have a feeling that might cause problems later. If it matters, the rollover amounts happen to all be such that adding $.10 won't flip to another dollar through rounding. So, what to do with the $.10 check? Again, this is an fbo check, not a check made out to me.
livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: retirement rollover ten cent interest payment check

Post by livesoft »

Ask your spouse or adult child to handle it for you as a birthday present. They can pay for the postage as part of the deal. Otherwise, they will probably find 10 cents long after you die when they search for unclaimed property escheated to the state of your choice. :)

BTW, I would've kept a copy of the "multi-page form" and just photocopy, change it slightly, and mail it in.
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Topic Author
tibbitts
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Re: retirement rollover ten cent interest payment check

Post by tibbitts »

livesoft wrote: Tue Jan 12, 2021 4:09 pm Ask your spouse or adult child to handle it for you as a birthday present. They can pay for the postage as part of the deal. Otherwise, they will probably find 10 cents long after you die when they search for unclaimed property escheated to the state of your choice. :)
The unclaimed property thing is actually one of the concerns if I don't go through the entire process again. The former custodian of the ten cents has to verify that the funds are qualified for the rollover. It's not the postage that's a concern; it's the complexity of the transaction that I'd prefer to not deal with. For the initial rollover transaction on this same account the new custodian initially wouldn't approve the rollover there was discussion about the process being complicated enough for this same account such that the new custodian would end up returning the initial ($100k+) check to me and refusing to accept it. That ended up not happening, but it's not unreasonable to think the same might occur with this ten cents.
livesoft
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Re: retirement rollover ten cent interest payment check

Post by livesoft »

tibbitts wrote: Tue Jan 12, 2021 4:53 pm . For the initial rollover transaction on this same account the new custodian initially wouldn't approve the rollover there was discussion about the process being complicated enough...
Maybe, but attach a note (with your phone number!) that refers to the previous rollover and I'll bet 10 cents that it goes through without a hitch.
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celia
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Re: retirement rollover ten cent interest payment check

Post by celia »

livesoft wrote: Tue Jan 12, 2021 5:33 pm Maybe, but attach a note (with your phone number!) that refers to the previous rollover and I'll bet 10 cents that it goes through without a hitch.
+1
That’s what I would do too. Plus I’d love to receive 10 cents from livesoft!

Hopefully the new custodian realizes it’s not worth their time to reject the check.
Topic Author
tibbitts
Posts: 12562
Joined: Tue Feb 27, 2007 6:50 pm

Re: retirement rollover ten cent interest payment check

Post by tibbitts »

So this morning I reprinted the original rollover form, added a note as to this being a supplemental distribution, and USmailed the check and form. I decided I wouldn't have been comfortable not depositing the check. So I'll see what happens and report back. I can still envision lots of things that could go wrong, starting with the mail/check getting lost.
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