@dmertz wrote:
The IRS relies on custodians and plan administrators to enforce the 60-day rule, otherwise the IRS only detects a violation upon audit of the transaction. However, it probably relies more on the the honor system with IRA and plan agreements making the individual the one responsible for complying with the tax code.
Doesn't seem to be much enforcement then.
I myself have done indirect (60-day) rollovers in the past and the receiving plan custodian has never asked for the date of distribution or even mention 60 days - they just take my word that it is a rollover and deposit it in the new account and issue the 5498.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
