401k issue
After leaving my previous company I did a 401k rollover to new company. 401k company sent a check to me, payable to new company. I mistakenly inserted I a bank's atm, and it accepted the check! Next I requested the bank to revert the transaction, which they did, but the 401k account has now been closed. Its been over 2 months and the funds are sitting in a hold state and I am still trying to get it back, which I will. But does this whole ordeal mean I have to pay taxes and penalties? Thanks.
Yes, you hit a taxable convertion the moment you deposited to your bank account and at the same time your crossed 60 days timeline.
However the check was not made payable under my name. It was under new 401k company. The bank made an error and deposited in my account. And I am not sure how the funds got transferred since the check was not in my name!
That will not help you, you mentioned that's it's already more than 60 days. That 60 days rule is pretty strict. But definitely consult with tax advisor.
Haha how does this happen?
GG
Yes. Your mistake was not simply not doing an online rollover to an IRA.
Yes