Every year, 401(k) plans are subject to compliance testing to ensure that the plan falls within certain parameters. When a plan falls outside of those parameters, corrective actions are required.
In this instance, the corrective action involved returning funds from your 401(k) account to you in the form of a check.
Once you have cashed the check, if you’d like to reinvest the funds at Betterment, you may open a Betterment personal account by clicking “Add Goal” in your Betterment account.
No tax filing action is required for the 2016 tax year. In January 2018, you will receive a 1099-R to file for the 2017 tax year.
If you have additional questions on why you are receiving this distribution, please contact your HR team. Also, please be aware that you may receive more than one check related to corrective actions.
Betterment is not a tax advisor, nor should any information herein be considered tax advice. Please consult a tax professional.