I have an old person banking question

[fernweh]

H recently rolled over an old 401k. He was sent a check from his old one and deposited to the new one electronically by taking a picture.

He had confirmed the balance of the check has done into this account. What are we supposed to do with the paper check that is still in our possession? Do we keep it? Shred it?

[wanderingback]

I throw mine away. With USAA the amount clears/is in my bank immediately.

[starburst604]

I think my bank recommends hanging onto it for like 30 days or something. I usually don’t and just throw it away after it clears but maybe with a very large sum I’d hang onto it for a bit

[Jalapeñomel]

For a 401k, I’d write void on the check and keep it until I did my taxes.

All other checked get thrown away.

[clairebear]

My bank recommends keeping checks for 2 weeks. For that one I'd write void and keep until your taxes are done.

[Wallflower]

I agree with the Jalapeñomel and clairebear and keep it with your taxes. I wouldn't even throw it out once I did the taxes, I'd just keep it in with all the other tax documentation.

Edited to add: I might also print off any confirmation you have from the bank showing the deposit. You never know what you have to validate with the IRS so it's better to be proactive while the information is fresh.

[deadwing]

For anyone choosing to dispose of a check, please shred it rather than putting it in the trash intact. The routing and account number are right there. Is it likely someone is going to rifle through your trash and find it? No. Is it worth the minor effort of shredding the check just in case? 100%.

[dexteroni]

We use mobile deposit regularly and we hold onto the check until it clears in a couple days. We’ve never had a situation where we’ve needed it beyond that.

I don’t know if you’ll need it at tax time - I didn’t think you had to pay taxes on inherited 401s up front, but you may still have to report the income. So it’s probably a good idea to put it with your tax stuff just in case.

[fernweh]

Aug 23, 2024 8:26:42 GMT -5 dexteroni said:

We use mobile deposit regularly and we hold onto the check until it clears in a couple days. We’ve never had a situation where we’ve needed it beyond that.

I don’t know if you’ll need it at tax time - I didn’t think you had to pay taxes on inherited 401s up front, but you may still have to report the income. So it’s probably a good idea to put it with your tax stuff just in case.

It’s not inherited. It’s just a roll over from a previous job. I don’t see why we would need the check since we don’t pay taxes until retirement but I’ll stick in in our files just in case.

[dexteroni]

Aug 23, 2024 9:48:37 GMT -5 fernweh said:

It’s not inherited. It’s just a roll over from a previous job.

Oh jeez total misread on my part. Then yeah taxes shouldn’t be involved at all.

[plutosmoon]

I would save the check with the taxes until you receive your 1099. The 1099 should indicate you did a rollover, but could indicate a regular withdrawal. If the 1099 is coded correctly as a rollover, I'd shred the check at that point. I'm not sure if having the cancelled check makes it easier to prove you deposited it in another retirement account in the event the 1099 doesn't indicate a rollover, or you get audited.

I mobile deposited my house sale proceeds and saved the check for about 90 days. I save smaller checks about 30 and then shred.

[cereal K]

I file all bills by month and throw the paper check in the folder of the month in which I deposit it. So then I have it for a year and know when to look for it.

[dorkus]

Aug 23, 2024 6:33:24 GMT -5 fernweh said:

H recently rolled over an old 401k. He was sent a check from his old one and deposited to the new one electronically by taking a picture.

He had confirmed the balance of the check has done into this account. What are we supposed to do with the paper check that is still in our possession? Do we keep it? Shred it?

Lurker chiming in here. Did he deposit in a regular bank account? If so there will be tax consequences. If you roll a 401k into an individual IRA you are not taxed on it.

[fernweh]

Aug 23, 2024 15:41:16 GMT -5 dorkus said:

Aug 23, 2024 6:33:24 GMT -5 fernweh said:

H recently rolled over an old 401k. He was sent a check from his old one and deposited to the new one electronically by taking a picture.

He had confirmed the balance of the check has done into this account. What are we supposed to do with the paper check that is still in our possession? Do we keep it? Shred it?

Lurker chiming in here. Did he deposit in a regular bank account? If so there will be tax consequences. If you roll a 401k into an individual IRA you are not taxed on it.

No - he rolled it over from one 401k account with his previous employer to a new 401k account with his new employer.