IRA distribution and rollover

Forum|Forum|2 years ago
February 13, 2024
1 reply
7 views

I had a total IRA distribution from one financial institution to close the account. But forgot to open another IRA account with another institution within 60 days to roll it over. Is there a way to still open one and not taxed on the distribution?

MinhT1

Level 15

If you didn't rollover your IRA distribution to a qualified account within the 60-day period, you'll be taxed on the distribution, and if you 're younger than 59 1/2, you'll have to pay the 10% early withdrawal penalty.

However, you can make a late rollover contribution – rollover after the expiration of the 60-day period - if you:

Are entitled to an automatic waiver of the 60-day rollover requirement,
Request and receive a private letter ruling waiving the 60-day requirement,
Qualify for and use the self-certification procedure for a waiver of the 60-day requirement.

Please read this IRS FAQ for the details and conditions of the waivers.

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