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CCH® PENSION AND BENEFITS — 9/03/07

No waiver of 60-day rollover period where taxpayer failed to submit documentation substantiating claim of impairment

In a private ruling, the IRS declined to waive the 60-day rollover requirement with respect to distributions from an individual retirement account (IRA) where the taxpayer failed to submit medical documentation substantiating the claim that his failure to make the rollover was due to medical impairment.

The taxpayer had requested a waiver under Code Sec. 408(d)(3)(I), claiming that the failure to waive the 60-day requirement would be against equity and good conscience because a stroke had impaired his ability to make sound financial decisions. The taxpayer, who was 64 years old, received distributions from two IRAs from which federal and state taxes were withheld, and used the proceeds to pay bills and to help his daughter buy a home. The IRS denied the waiver because he failed to submit any medical documentation showing a disability from the stroke, which occurred two years before the IRA distributions.

For more information on this and related topics, consult the CCH Pension Plan Guide.

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