IRS Creates Self-Correction Procedure For Missed Retirement Plan Rollovers

The IRS has created a self-correction procedure (Rev. Proc. 2016-47) designed to help recipients of missed retirement plan rollovers retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling over the distributions into another retirement plan or IRA.

The revenue procedure explains how eligible taxpayers who face various mitigating circumstances can qualify for a waiver of the 60-day time limit and avoid possible early distribution taxes. In addition, the revenue procedure includes a sample self-certification letter that a taxpayer can use to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that the taxpayer qualifies for the waiver.