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U.S. Master™ Pension Guide, 2009 Edition
Revised for 2009 to include relevant provisions of the Heroes Earnings Assistance Relief Tax (HEART) Act and the Emergency Economic Stabilization Act.

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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.

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