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CCH® PENSION — 04/17/12

Waiver of 60-day rollover requirement granted to taxpayer who mistakenly requested duplicate IRA distribution

The IRS has granted a request for a waiver of the 60-day individual retirement account (IRA) rollover requirement where a taxpayer mistakenly requested a duplicate distribution from her IRA due to an error committed by the financial institution.

The taxpayer had completed a form to withdraw her required minimum distribution from her IRA. However, before she received it, her financial institution erroneously sent her an additional form to withdraw her required minimum distribution which resulted in her requesting a duplicate distribution from the IRA. The taxpayer was unaware of the duplicate distribution until after the 60-day rollover period had expired. The taxpayer's failure to accomplish a timely rollover was due to the error by the financial institution which caused her to request the duplicate distribution. Therefore, the IRS waived the 60-day rollover requirement and the taxpayer was given 60 days to roll over the duplicate distribution.

Source: IRS Letter Ruling 201207013.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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