BillM223
Expert Alumni

Deductions & credits

It's "carryover" not "rollover". The IRS says, "A plan may allow either the grace period or a carryover, but it may not allow both." (page 18, IRS Pub 969)

 

And you must use whatever is in your company's plan - so you have to ask them how their plan is written. 

 

"If so, the plan must be exhausted in 2 days to meet the "grace period" rule, correct? "

 

No, as I have said several times, there is no rule for this and I don't believe that the IRS has ever made a statement on this particular situation.

 

I have expressed what I thought would be a reasonable solution, but there are no rules here. That's why I have repeatedly said that whatever you choose, document it well (i.e., what did you do and why did you do it).

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