The site provides information about how participants can waive the 60-day limit that retirement plan participants have to transfer all or part of their assets before losing their tax-deferred status. A request for a waiver must follow Revenue Procedure 2003-16 , 2003-1 C.B. 359, and a fee must be paid for each request.
According to the site, in order for the 60-day rollover limit to be automatically waived, an individual must meet all of the following requirements:
- The financial institution receives the funds on an individual’s behalf before the end of the 60-day rollover period.
- All of the procedures set by the financial institution for depositing the funds into an eligible retirement plan within the 60-day period are followed (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.
The IRS site also provides information on:
- Special relief afforded by the Katrina Emergency Tax Relief Act of 2005.
- A chart summarizing the rollover rules as a general guide but should not be relied upon as a substitute for professional tax advice.
- Guides on filing returns for Individual Retirement Arrangements; Retirement Plans for Small Businesses, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations; and Pension and Annuity Income.
For more information, go here .
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