IRA 60-day rollover waiver denied.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

A recent letter ruling may serve as a warning to victims of Hurricanes Katrina and Rita, even though it dealt with a 2004 Florida hurricane. Letter Ruling 200544022 denied a waiver of the 60-day limit for a tax-free IRA rollover requested by a taxpayer located in an area that received relief from Federal tax deadlines for hurricanes that swept Florida in 2004.

Facts: The taxpayer took an IRA distribution in July 2004 to facilitate the purchase of a new home. He anticipated that a home equity loan secured by the new house would permit him to repay the IRA withdrawal within 60 days. Severe hurricane damage to the new home...