IRA 60 day rollover rule

[PipiR]

I had a Traditional IRA with JPMorgan Chase Bank. I directed a direct rollover of the amount to Corebridge Financial where I had an existing IRA in order to consolidate accounts.  Corebridge cashed the check on 12/17/25. They sat on the check because they "did not know what to do with it," without notifying me.  I have now asked that Corebridge return the full amount to me. In the meantime, I am trying to open an IRA with another bank to fund it with the money to be returned from Corebridge. I will soon exceed the 60 day limit set by IRS for rollovers. How much of a penalty can I expect if I exceed the time by a couple of days?

[PipiR]

Further information:  I have not received the 1099 from JPMorgan Chase, so I am hoping that when I do, that it has a G in box 7, since the check was not sent to me, but directly to Corebridge, which would not bind me to a 60 day rollover.

[dmertz · Accepted solution]

"How much of a penalty can I expect if I exceed the time by a couple of days?"

First, there should be no Form 1099-R if the JPMorgan Chase properly initiated a trustee-to-trustee transfer of the IRA.  This is not any kind of rollover.  For a proper trustee-to-trustee transfer, they would have made the a check out to a traditional IRA for your benefit, not to you personally.  There is no time limit on completing a trustee-to-trustee transfer because there is no distribution.

However, if the funds somehow get paid to you, it becomes a distribution.  The 60-day clock would start on the day that follows the day that you have constructive receipt of the funds.

Since you already have the IRA at Corebridge that was intended to receive this transfer, why not just have them deposit the funds into that account and complete the transfer (not as a rollover contribution)?  If you instead receive the funds and deposit them into another traditional IRA, you will likely have to report it as a distribution and rollover by submitting a substitute Form 1099-R (Form 4852) because it seems that nothing about this will result in a Form 1099-R issued by either JPMorgan Chase or Corebridge.

[PipiR]

It was intention, and request, that the funds from JPMorgan be transferred to Corebridge Financial. As I said, Corebridge cashed JPMorgan's check, but did not transfer the funds to my IRA and instead placed  them on a shelf since 12/17/25. They had my money sitting idle since then, without making any market gains, and made no attempt to notify me. At this point, I do not want to, nor do I trust them to handle my money properly, which is why I asked Corebridge to return the money to me.

[dmertz · Accepted solution]

I suspected that that might be the case, but it still would probably more straightforward to have the funds deposited into the IRA and then transfer the IRA.  With you never having had constructive receipt of the funds, no reporting would be required, no distribution or rollover.

If you do get constructive receipt of the funds, I think it would be appropriate to treat the transfer as a completed transfer and file a substitute 2026 Form 1099-R (Form 4852) next year indicating that Corebridge made an IRA distribution to you.