401(k) rollover check for 8 cents. Can I ignore it?

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hoppy08520
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401(k) rollover check for 8 cents. Can I ignore it?

Post by hoppy08520 » Mon Jan 14, 2019 4:45 pm

I rolled over my old 401(k) recently to the Thrift Savings Plan, after changing jobs. Today, almost 2 months later, I got another rollover check in the mail from the old custodian, payable to "TSP FBO Hoppy" for $0.08. Yes, 8 cents. I imagine this is for some interest that got paid. I don't want to hassle my old company to fill out another rollover form, and spend $0.50 on a stamp, for 8 cents.

Can I just ignore this check or will I run into some tax problem if I don't do something with it? If the check was made out to me, then I'd deposit it and pay the income tax and penalty on the 8 cents. But it's made out to the TSP so I can't do that. Thank you for any tips.

mark1623
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by mark1623 » Mon Jan 14, 2019 4:56 pm

I don't know if there is a de minimis exception on 1099-R reporting but regardless you'll just owe tax on 8 cents. May want to adjust your budget accordingly :D

livesoft
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by livesoft » Mon Jan 14, 2019 5:00 pm

I'd ask for a stamp when someone asks me what do I want for my birthday, then I'd mail it in.
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David Jay
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by David Jay » Mon Jan 14, 2019 5:30 pm

You probably need to record the amount, but it rounds to zero (you only need to enter whole dollars on your tax return).
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whodidntante
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by whodidntante » Mon Jan 14, 2019 5:43 pm

Do you have a cat? Mine likes to shred checks.

otter5
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by otter5 » Mon Jan 14, 2019 5:47 pm

I have you beat. I got a check recently from Fidelity for 1 cent. You can't make this stuff up.

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hoppy08520
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by hoppy08520 » Mon Jan 14, 2019 5:51 pm

otter5 wrote:
Mon Jan 14, 2019 5:47 pm
I have you beat. I got a check recently from Fidelity for 1 cent. You can't make this stuff up.
Thanks, I feel rich :D

I know this is a funny topic, and I too have laughed with my wife about the $0.08 check, but I just want to make sure I don't run into tax problems which is why I've asked.
David Jay wrote:
Mon Jan 14, 2019 5:30 pm
You probably need to record the amount, but it rounds to zero (you only need to enter whole dollars on your tax return).
Thanks David, I'll probably do this.

MtnBiker
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by MtnBiker » Mon Jan 14, 2019 10:16 pm

otter5 wrote:
Mon Jan 14, 2019 5:47 pm
I have you beat. I got a check recently from Fidelity for 1 cent. You can't make this stuff up.
Years ago I got a check for $0.01 from Schwab, if I remember correctly. Was going to frame it but then forgot about it. A couple of years later they sent another check to replace it. So I cashed that second $0.01 check as a courtesy so that they didn't have to go to the effort to cut a third check.

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celia
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Re: 401(k) rollover check for 8 cents. Can I ignore it?

Post by celia » Tue Jan 15, 2019 12:17 am

If you decide to mail it in, it needs to be received within 60 days of the original withdrawal.

Also, know that the postage rates are going up in less than 2 weeks. You wouldn't want to waste an extra $0.05 to mail it in 3 weeks! :oops:

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