17.2 Individual Retirement Arrangements (IRAs): Rollovers
How long do I have to roll over a distribution from a retirement plan to
an IRA account?
You must complete the rollover by the 60th day following the day on which you receive
the distribution. (This 60-day period is extended for the period during which the
distribution is in a frozen deposit in a financial institution.) The IRS may waive
the 60 day requirement in certain situations, such as in the event of a casualty,
disaster, or other event beyond your reasonable control. To obtain a waiver, a request
for a ruling must be made and a user fee of $90.00 will apply, See
Revenue Procedure 2003-16 (within IRS Bulletin 2003-4). A written explanation
of rollover must be given to you by the issuer making the distribution. For information
on distributions which qualify for rollover treatment, refer to Tax Topic 413, Rollovers
from Retirement Plans . For information on the Direct Rollover Option, refer
to Publication 590 Individual Retirement Arrangement .
References:
If I can't withdraw funds penalty free from my 401(k) plan to purchase my
first home, can I roll it over into an IRA and then withdraw that money to use as
my down payment?
Yes, if you are receiving a distribution from a 401(k) that is eligible to roll
over into a IRA and you meet all of the qualifications for an IRA distribution for
a first-time homebuyer. Your plan administrator is required to notify you before making
a distribution from your 401(k) plan whether that distribution is eligible to be rolled
over into an IRA. To see if you qualify for a distribution to be used as a first-time
homebuyer, refer to Publication 590, Individual Retirement Arrangements (IRAs) .
References:
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