Good News from the IRS

On August 24, 2016 the IRS released new guidance that allows individuals that have missed the 60 day time limit to make a tax free rollover of a distribution from a retirement plan or IRA to “Self-Correct” the failure.  The IRS will now permit Trustees of IRAs and retirement plans to accept a “Rollover contribution” after the 60-day time limit, if certain conditions are met.  Until now the IRS has strictly enforced the 60-day limit, and Trustees have refused to accept Rollover contributions after the 60 days.  The new procedure allows individuals that have missed the deadline to provide a written “Self-Certification” to the Trustee that will permit a Rollover.  IRS Revenue Procedure 20016-47 includes a form Self-Certification that may be used by filling in the blanks.  One of the conditions is that the reason the rollover was not made on time must be one of the 11 reasons listed.  The 11 reasons include all of the reasons that generally prevent you from making a timely rollover.  For more information contact Jeff Bragdon at (412) 454-0233 or jbragdon@willliamscoulson.com.

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