Posted by on 09.08.16
IRS Simplifies the Process for Correcting Late Rollovers between Retirement Accounts
Issued August 24, 2016, Rev. Proc. 2016-47 simplifies the process for correcting late rollovers from one tax-qualified retirement account to another. The guidance provides plan administrators and IRA trustees with an additional basis for accepting rollover contributions after the 60-day deadline.
When a distribution is made from a tax-qualified retirement account, such amount will be taxable unless it is rolled over into another qualified account within 60 days of the distribution. Previously under Rev. Proc. 2003-16, taxpayers who missed the 60-day period needed to apply to the IRS for a private letter ruling and pay a user fee for a waiver of the requirement. Now, pursuant to Rev. Proc. 2016-47, relief is available without IRS intervention.
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