IRS Announces New Waiver Procedure for Taxpayers Who Inadvertently Miss the 60-Day Rollover Deadline

Financial Advisors NJ

Generally, in order to avoid current taxation, a taxpayer must roll a distribution received from an employer plan or IRA to another plan or IRA within 60 days after receiving the distribution. The IRS has the ability to waive the 60-day limit in certain circumstances. However, a private letter ruling from the IRS was usually needed to obtain that relief.

In Rev. Proc. 2016-47 the IRS has now provided a simpler “self-certification” procedure that allows taxpayers who meet one of 11 criteria to make a late rollover without seeking a private letter ruling (subject to later IRS audit).

We recommend you contact your tax professional to learn more about these new procedures for your retirement plan rollovers.


wealth management

print

Author Broadridge Financial

More posts by Broadridge Financial