<prompt> Human: My wife just left a company and the 401k provider, CoVantage, took a 40 fee and Federal Withholdings and cut her a check for the remainder. Does this mean she can just keep the money and put it in her regular savings account, or does she have to roll this over into an IRA?x200B;Thanks!  <response>: Was the vested balance less than 1000? How much time elapsed between the last day of employment and the time the money was paid out? What do the plan guidelines say about low balances being paid out?My first impression, as a former 401k rep, is that the balance was less than 1000. In that case, the provider is not required to keep the money and has the option to pay it out to the holder. Theres usually a window of time between the last date of employment and the time the 401k is paid out, but its usually at least 30 days, and again, based on my own experience of having this type of conversation on a regular basis, Im thinking that the time for your wife to tell the company what to do with the money lapsed, and the plan paid it out automatically per the plan regulations.You dont have to roll it over; you can keep it if you like. Youll get a 1099-R next year reporting the taxable amount and federal withholding. If you want to roll it over, you can do that as well, as long as it is done within 60 days of the date of the distribution. You can ask your bank for more information on that. 