Legal Question in Tax Law in Georgia

Class action settlement on 401k rollover account

I received a payment as part of a class action settlement on an investment account related to 401k rollover. The payment was made out to me. Is this payment subject to the early withdrawl penalty for a 401k? Since the check was made out to me is there anyway to deposit into a currect 401k account and avoid the penalty?


Asked on 9/19/07, 11:31 pm

1 Answer from Attorneys
Robert Thompson J. Robert Thompson Attorney

Re: Class action settlement on 401k rollover account

Without more facts, I can't say for certain, but there are provisions for avoiding the early withdrawal penalty on payments made in error directly to the owner of a retirement account, by depositing the erroneous payment into a proper retirement account.

I would consult a tax attorney or CPA for a more definitive answer.

Read more
Answered on 9/20/07, 11:09 am


Related Questions & Answers

More Tax and Taxation Law questions and answers in Georgia