Question

In January, Donna’s dad, who is 75 years old, agreed in an email with his financial advisor that he wanted to take a distribution of $50,000 from his IRA and roll it over into a new IRA. His financial advisor inadvertently moved the funds into a taxable account. This mistake was discovered by the advisor at the end of the year. The IRS would likely grant a waiver to the 60-day rollover requirement, thereby permitting additional time for Donna’s dad to roll the money into a new IRA.

a. True

b. False

Answer 1

True

Here Waiver to 60 days roll over can be claimed if one is eligible for automatic rollover. One is eligible for automatic rollover if

-the financial institution receives the funds on your behalf before the end of the 60-day rollover period.
-You followed all of the procedures set by the financial institution for depositing the funds into an IRA or other eligible retirement plan within the 60-day rollover period (including giving instructions to deposit the funds into a plan or IRA).
-The funds are not deposited into a plan or IRA within the 60-day rollover period solely because of an error on the part of the financial institution.
-The funds are deposited into a plan or IRA within 1 year from the beginning of the 60-day rollover period.
-It would have been a valid rollover if the financial institution had deposited the funds as instructed.