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Comment by toomuchtodo | Hacker News Reader

I needed a check from Discover Bank (online savings, similar to Ally) to pay my old outsourcing HR company back for a 401k loan. Discover Bank sent me an "official check" (which takes ~8 days to arrive from issuance), which (according to the FDIC consumer protection laws [1]) is identical to a cashier's check, but the outsourcing HR company would not accept an "official" check, only certified/cashiers.

Had I banked at Chase, they would've provided me an actual "cashier's check" in branch at a moment's notice.

Is it worth ~$200/year in interest to not be able to get to your savings at a moment's notice? Before, I would've said yes. Now that its cost me an $1800 IRS penalty, no longer.

[1] https://www.fdic.gov/regulations/laws/rules/6500-3222.html

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Did you appeal the penality with the IRS?

This kind of thing doesn't normally happen, or shouldn't.

You should have a local bank account for the times you need local branch if you do most of your banking online.

If you're going to spend quite a bit of money soon, like within a month or so, you should move that money into a local branch beforehand, like I did when I was buying my house and I knew I'd need the funds on closing date.

Even if you fail to do that ahead of time you can wire the money for, maybe, $20 to the local bank, wire transfers are instant, and get the cashier's check there.

That's like saying "you shouldn't use brokerage accounts cause if you need the money you'd have to wait for the sale to settle before you can access your funds."

I was between jobs, my child was sick, and my dog was dying. I agree I could've solved the problem by starting the process immediately when I separated from my last employer. Life happens.

I have documentation to show I made a best effort attempt to repay the loan in time (official check, fedex tracking numbers, etc), but I won't know if its good enough until I file next year's tax returns and challenge the 401k provider's 1099-R.

creepydata suggested that you should appeal to the IRS. There is an appeal process. Talk to your accountant about doing that.

Was 8 days your only option? I bank with Capital One and I can get a check overnighted anywhere for $20 in processing fees.

They didn't offer to overnight a check until they mistakenly voided the first check; it would not have arrived in time.

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