David W. Harper
Retired Attorney
Tax Ideas

 

Article 36
IRS Will Not Waive 60 Day Requirement for Rollover of an IRA to Another IRA

The IRS has the authority to waive the 60 day requirement if the rollover is not made under certain circumstances 1) error of custodian, 2) inability to complete rollover because of death, disability, hospitalization, incarceration or postal error; 3) how you use the distribution; and 4) how long a time it was after the 60 day rollover period. Taxpayer withdrew funds to live on and pay his bills from his IRA Account after his unemployment ran out. Soon after the 60 days expired, he received permanent employment and wanted to re-deposit the money into his IRA Account, but the IRS refused the extension saying that he had taken the money for a short-term interest free loan and they would not waive the 60 day rollover requirement. Result: Taxpayer had to pay income tax on the whole IRA.

If you have a question, click here.

Tax Ideas Guy

Article Archive
TrustAndEstate.com


 
DISCLAIMER:
This web page is designed to help you know when to ask a question and what questions to ask. Tax laws are very "fact" specific. What would be a good tax savings plan for one person may not be good or proper for another person. Do not attempt to follow any of the above without discussing it with your Tax Advisor. Any federal tax reference contained in this communication, including attachments and enclosures, is not intended or written to be used and may not be used, for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party, any tax related matters addressed herein.

Located in the Portland Metro area
 
Phone:   503.698.4152
     

 

Archive

 

©2010 David W. Harper