Extension of 60 Day Rollover
Posted By: Jennifer O'Neill // Jun 21, 2016
The IRS waives the 60-day rollover requirement automatically only if all of the following apply:
- The financial institution receives the funds on your behalf before the end of the 60-day rollover period.
- You followed all the procedures set by the financial institution for depositing the funds into an eligible retirement plan within the 60-day period (including giving instructions to deposit the funds into an eligible retirement plan).
- The funds are not deposited into an eligible retirement plan within the 60-day rollover period solely because of an error on the part of the financial institution.
- The funds are deposited into an eligible retirement plan within 1 year from the beginning of the 60-day rollover period.
- It would have been a valid rollover if the financial institution had deposited the funds as instructed.
If you do not qualify for an automatic waiver, you can apply to the IRS for a waiver of the 60-day rollover requirement. When considering whether or not to grant a waiver the IRS considers the following:
- Errors committed by a financial institution.
- Inability to complete a rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country or postal error.
- The use of the amount distributed (for example, in the case of payment by check, whether the check was cashed).
- The time elapsed since the distribution occurred.