Q: I got a check closing out my old 401(k). Can I add it to my new 401(k) without penalty? -- Matt Gould, New Cumberland, Pa.
A: Yes, and act fast.
Unless you put the money in another retirement account within 60 days of receiving the check, you'll owe taxes on the sum, plus a 10% early-withdrawal penalty if you're not yet 59½, says John Piershale, a financial planner in Crystal Lake, III.
One hitch: The old plan usually withholds 20% of your account for taxes, so when you make the deposit you'll have to use other cash to cover that 20% shortfall.
Assuming you get this done within 60 days, you'll get the withheld money back at tax time.
If your new 401(k) plan doesn't accept rollovers or will make you wait too long to deposit the funds, put the money in an IRA, advises Lancaster, Pa., planner Rick Rodgers. You can always move it into a 401(k) later.