When Is 60 Days Not 60 Days?
Recent rulings by the Internal Revenue Service make it easier for clients who have missed the 60-day tax-free rollover deadline for individual retirement accounts and other tax-advantaged retirement plans to obtain a waiver and successfully complete the rollover.
Generally, there are two conditions under which the IRS may grant a waiver:
- An automatic extension due to error by the financial institution, or
- A private letter ruling request based on taxpayer circumstances.
An article in the September 2005 issue of the Journal of Financial Planning written by by Kenn Beam Tacchino, J.D., LL.M., and Christina Moore provides the details.