I've recently received a letter from the company's HR to the effect that I will receive a corrective distribution (of unspecified amount) that will be taxable as 2019 income. I will receive a tax reporting form (presumably 1099R) in Jan 2020. The letter does not indicate that any tax will be withheld from the distribution.
My question is slightly different. I have already left the company, and I want to avoid a taxable distribution, which would be a setback to my retirement savings. I have two ideas:
Is it legal for me to try to quickly execute a direct rollover to my IRA in order to empty my 401(k) before this distribution takes place?
If I do get a corrective distribution, am I allowed an indirect rollover of this amount into a single IRA, provided I do so within 60 days? (Or, is this nondiscrimination distribution subject to additional restrictions?)
Are these ideas viable? What other options do I have?