WHAT is this check I got about a premature distribution??

[MVal]

So I did my taxes a few weeks ago and already got my refund, but today I received a check in the mail for which I have no idea about.

It comes from some outfit called Vantagepoint Transfer Agents, LLC which seems to work with retirement groups or something and the stub says this is a "Withdrawal Distribution" and gives two lines items of different amounts, with one labeled, "Gross distributions" and the other, "Federal Income tax."  It also says "Tax reporting state - Missouri (where I lived in 2016 but worked in KS)" and gives a "distribution code" of "premature."

I did not take any distributions whatsoever on any of my accounts, so I'm very confused by this. My accountant did not mention this to me when he did my taxes, so I'm not sure if this has something to do with my Roth or my tIRA, 401K, HSA or what!

[TheStachery]

Could it be from a former employer 401k that you didn't have a big enough balance and they forced a distribution. Perhaps they weren't able to get ahold of you to inform you of the option to move it.  My guess it's a small balance.


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[MVal]

Could it be from a former employer 401k that you didn't have a big enough balance and they forced a distribution. Perhaps they weren't able to get ahold of you to inform you of the option to move it.  My guess it's a small balance.


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Ah, that is it! I used to work for the state many years ago and I just called them and they said they in fact sent communication to everyone with balances under $1000 to either roll it to an IRA or take a distribution. I moved recently and I wonder if that's why I never got the request on this. Would have been nice to roll it and not lose 20% to taxes, but at least it was a very small balance. Oh well, extra money for bills this month!

[MVal]

You can still roll it into an IRA. You have 60 days to roll it over with no tax consequences. Then when you file your taxes next year you'll basically get the withheld portion back since you didn't have a taxable event

Oh, for realz?? :) Okay, then! Thanks, I never would have known that.

[MVal]

Here's the link to the IRS page about it so you have legitimate backup
https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions

Thanks! I also just called Vanguard and they gave me instructions for sending them a check for the untaxed amount and informed me of the tax form they would send to the IRS about it.