Self-certification for Waiver of 60-Day Rollover Requirement

aba_pab_sept16_images_rdcr_3Generally, an eligible rollover from a qualified plan or an Individual Retirement Account (IRA) must be completed no later than the 60th day after the distribution of such amount in order to be excluded from income. However, under certain circumstances this requirement may be waived. The Internal Revenue Service (IRS) recently released Revenue Procedure 2016-47, which provides a participant self-certification procedure for such waiver. No IRS filing to request the waiver is needed when certain conditions are met.

The taxpayer must provide written self-certification to the plan administrator or IRA trustee that one or more of the conditions listed in the guidance prevented him/her from complying with the 60-day rollover requirement. The guidance includes a model letter that may be used for this purpose.

Additionally, the IRS must not have previously denied a waiver with respect to all or a portion of the amount to be rolled over and the rollover contribution must be made as soon as practicable after resolution of the reason for the delayed contribution has been resolved. There is a 30-day safe harbor for this requirement.

If you have participants who would like to consolidate other retirement accounts and rollover funds into your plan with the Program, we can help. Just have them call 800-348-2272 or email for the necessary procedure.

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