Consumer Beware: Your Tax Crossfire Could Trigger a $500 Penalty This Spring
If you’ve got money in two retirement accounts, your wallet is caught in a dangerous tax crossfire that could cost you big. New IRS guidance warns that a simple rollover error between a 401(k) and an IRA—especially after a job change—can trigger unexpected penalties, fees, and a surprise $500 fine if you miss the 60-day deposit window. Don’t let Uncle Sam catch you in the crossfire: Double-check your direct rollover instructions before April 15 to avoid burning cash you didn’t plan to lose.