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Hi Dbb85,
You are correct that you have 60 days to complete an indirect rollover of IRA funds. The IRS may waive the 60-day rollover requirement in certain situations, or if you missed the deadline because of circumstances beyond your control.
According to the IRS, there are three ways to obtain a waiver of the 60 day rollover requirement:
- You qualify for an automatic waiver,
- You request and receive a private letter ruling granting a waiver, or
- You self-certified that you met the requirements of a waiver and the IRS determines during an audit of your income tax return that you qualify for a waiver.
You qualify for an automatic waiver if all of the following apply:
- The financial institution receives the funds on your behalf before the end of the 60-day rollover period.
- You followed all of the procedures set by the financial institution for depositing the funds into an IRA or other eligible retirement plan within the 60-day rollover period (including giving instructions to deposit the funds into a plan or IRA).
- The funds are not deposited into a plan or IRA within the 60-day rollover period solely because of an error on the part of the financial institution.
- The funds are deposited into a plan or IRA within 1 year from the beginning of the 60-day rollover period.
- It would have been a valid rollover if the financial institution had deposited the funds as instructed.
If you do not qualify for an automatic waiver, you can apply to the IRS for a waiver of the 60-day rollover requirement or use the self-certification procedure to make a late rollover contribution.
Here’s a link to the IRS guidance for waivers of the 60-day rollover requirement. I hope you find this information helpful.
Thanks for participating in today's Ask The Expert event!
Kimberly, CPA for over 30 years
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