The IRS has issued guidance in Revenue Procedure 2016-47, which provides that eligible taxpayers with mitigating circumstances can qualify for a waiver of the 60-day time limit on IRA rollovers to avoid early distribution taxes. A sample self-certification letter is provided to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that they qualify for the waiver.
Previously, taxpayers who fail to meet the time limit could only obtain a waiver by requesting a private letter ruling from the IRS. Now a taxpayer missing the rollover deadline may qualify for a waiver if one of the listed circumstances apply, such as a distribution check that was misplaced and never cashed, the taxpayer’s home was severely damaged, a family member died, the taxpayer or a family member was seriously ill, the taxpayer was incarcerated or restrictions were imposed by a foreign country.