Retirement plans: possible relief for missing 60-day rollover deadline.

• Author: Josephs, Stuart R.
• Position: Fed Tax

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Rev. Proc. 2016-47 (IRB 2016-37, Sept. 12, 2016) provides guidance regarding waivers of the 60-day rollover requirement contained in IRC secs. 402(c)(3) and 408(d) (3). It allows a self-certification procedure, subject to verification on audit, that may be used by taxpayers claiming eligibility for a waiver under secs. 402(c)(3)(B) or 408(d)(3)(I) for a rollover contribution into an employer's qualified retirement plan or IRA.

Under this procedure, a plan administrator or an IRA trustee, custodian or issuer (IRA trustee), may rely on this certification in accepting and reporting receipt of a rollover contribution.

An appendix to Rev. Proc. 2016-47 contains a model letter that may be used for self-certification.

Written Certification

A taxpayer may make a written certification to a plan administrator or IRA trustee that a contribution satisfies the conditions specified below, by using the model letter on a word-for-word basis or by using a letter substantially similar in all material respects. A copy of the certification should be kept in the taxpayer's files and available, if requested, on audit.

Conditions for Self-certification

1. No prior IRS denial. The IRS must not have previously denied a waiver request for a rollover of all or part of the distribution to which the contribution relates.

2. Reason for missing the 60-day deadline. The taxpayer must have missed this deadline because of the taxpayer's inability to complete a rollover due to one or more the following reasons:

   1. An error was committed by the financial institution receiving the contribution or making the distribution to which the contribution relates;

   2. The distribution, having been made in the form of a check, was misplaced and never cashed;

   3. The distribution was deposited into and remained in an account that the taxpayer mistakenly thought was an eligible retirement plan;

   4. The taxpayer's principal residence was severely damaged;

   5. A member of the taxpayer's family died;

   6. The taxpayer or a member of the taxpayer's family was seriously ill;

   7. The taxpayer was incarcerated;

   8. Restrictions were imposed by a foreign country;

   9. A postal error occurred;

   10. The distribution was made on account of a levy under Sec. 6331 and the proceeds of the levy have been returned to the taxpayer; or

   11. The party making the distribution to which the rollover relates delayed providing information that the receiving plan or IRA required to complete the rollover, despite the...