IRA Rollovers – IRS will Waive the 60-Day Grace Period!

You want to roll over your IRA… maybe you have had a recent job change,  changed your financial advisor, or want to move a 401(K) to an IRA account  – or you want to merge or separate your IRAs for numerous reasons.

In the past, the rollover/distribution period was limited to 60 days otherwise a taxpayer would have to apply for a costly private letter ruling (PLR).

IRS realized the substantial need for guidance and modification in this not so uncommon area and issued a Revenue Procedure that will waive the 60-day time restriction for rollovers.

Rev. Proc. 2016-47 modifies Rev. Proc. 2003-16 and provides some leniency to the prior, stringent rules.  Rev. Proc. 2016-47 allows rollovers for “self-certification” if one of the eleven designated situations are present – this means: no PLR and additional fees!

The eleven situations where “self-certification” will be granted range from – errors made via taxpayer mistakenly setting up the wrong plan to basic numerical errors, deposit errors, postal errors, etc.

An official waiver of the 60 day deadline will be automatic and a letter ruling not required if you can meet certain requirements.  Keep in mind, the IRS will consider all relevant facts and circumstances relevant to the situation.

If you have would like more information regarding your particular rollover situation, please contact us for a review of your case and how this Revenue Procedure could benefit you!

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