When can the 60 day rollover limit for IRAs be waived?
- January 14, 2023
- David Greene
- Comments Off on When can the 60 day rollover limit for IRAs be waived?
The general rule is that if you take a distribution, it must be rolled over into another qualified plan within 60 days to avoid taxation and the 10% penalty. There has always been a “hardship” waiver for certain events causing late rollovers, such as a casualty, disaster or other event beyond the taxpayer’s control. Also, the CARES Act provided relief for Coronavirus related withdrawals. These have to be approved by the IRS. However, there is also a Self-Certification procedure to help taxpayers in your situation. If you meet one of 11 criteria you can submit a written certification to the plan administrator (using a model letter) explaining why you missed the deadline and the transfer will be treated as within the 60 days without specific IRS pre-approval.