I am making a delayed repayment of a 60 day rollover due to serious illness of a family member last year. How do I submit the waiver when I file through turbotax?

[DeanM15 · Accepted solution]

There is a way to self certify that you are qualified for a waiver to make a delayed repayment of a 60-day rollover requirement for a retirement plan.

You need to submit a model letter, not to the IRS, but rather to the financial institution that is accepting the payment. You can find the model letter here, at the end of Revenue Procedure 2016-47. The financial institution is not obligated to accept your position, but if it does it would change the 1099Rs so that the late payment would go through as a 60-day rollover. 

You can find out more about retirement plans and waivers for the 60-day rollovers here and here. 

[dmertz]

There will be no change to the Form 1099-R itself.  If the financial institution accepts your self-certification that you would qualified for a waiver of the 60-day deadline, the distribution is simply reported on your tax return as having been rolled over, the same as if you had rolled it over within 60-days.  If the rollover is to an IRA, the financial institution will include the notation "SC" in box 13c of the Form 5498 that reports the rollover contribution, but this doesn't have any bearing on your tax return.

[Tao-8]

Hi Dean,

I am in the similar situation. My bank agree to accept the late re-contribution. My question is in turbotax, should I choose the option "rollover within 60 days"? There is no other options for 60 days waive. And if I don't choose rollover within 60 days, it will trigger the tax.

Thanks,

Jay

[dmertz]

Yes, if the financial institution accepts the late rollover, select rollover within 60-days.  The type of rollover is still one that was normally required to have been rolled over within 60 days, but you are self-certifying that the you would qualify for a waiver of that deadline.