News & Information

 

FEATURED PRODUCT

Pension and Employee Benefits: Code, ERISA, & Regulations
This series provides an authoritative and comprehensive reference to the full text of benefits-related provisions of the Internal Revenue Code, the full text of ERISA, and related proposed and final regulations, as well as the official IRS and DOL preambles, and Committee Reports.

Learn More »

CCH® PENSION AND BENEFITS — 2/18/08

Waiver of 60-day rollover requirement denied where taxpayer mistakenly rolled over funds into a non-IRA account

In a private ruling, the IRS refused to grant a waiver of the 60-day rollover requirement where the taxpayer mistakenly rolled over a 401(k) plan distribution into a taxable account.

The taxpayer opened a non-IRA account via an online account creation tool and deposited the funds from the 401(k) distribution received from a former employer. The taxpayer did not realize his error until he received a Form 1099-INT from the custodian of the non-IRA account more than 90 days after the deposit. The taxpayer failed to present evidence of how any factor enumerated in Rev. Proc. 2003-16 (CCH Pension Plan Guide ¶17,299Q63) affected his ability to timely rollover the 401(k) funds. There was no evidence that the custodian of the funds provided any misinformation to the taxpayer. Therefore, the taxpayer was solely responsible for the failure to effect a timely rollover, and the 60-day rollover requirement would not be waived.

Visit our News Library to read more news stories.