Compliance July 27, 2006
IRS Offers Online Guide to Rollovers
July 27, 2006 (PLANSPONSOR.com) - The Internal
Revenue Service made an online resource available to guide
individuals through the process of rolling their tax-deferred
assets from one retirement plan to another.
Reported by Adrien Martin
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 .
You Might Also Like:
Inherited IRA RMD Final Rules Postponed to 2025
The IRS will not enforce RMDs for inherited IRAs under the 10-year rule until at least 2025.
PLESA Match Manipulation Not a Concern, Chamber of Commerce Says
Other SECURE 2.0 implementation issues are a much bigger worry.
Comment Period Extended for SECURE 2.0 Reporting, Disclosure Rules
Federal agencies are seeking advice on how to improve the reporting and disclosure system for retirement plans governed by ERISA.