Retirement Plan and IRA Rollovers

The following video is from the IRS.

Did you know that you can move funds from your Individual Retirement Arrangement and retirement plan to another IRA or plan? There are two ways to do so: you can have the funds directly transferred from one account to another IRA account or plan, or you can have a check sent directly to you.

If you have a check sent to you, you only have 60 days to deposit that check into the other IRA or retirement plan. If you miss the deadline, you may have to pay tax on the distribution, and you may have to pay an additional 10% tax on early distributions.

However, if you miss the 60-day deadline due to circumstances beyond your control, such as an error made by a financial institution, you could be eligible for a waiver. You can even use the model letter on IRS.gov to self-certify that you’re eligible for a waiver.

For more information for rolling over an IRA or retirement plan, go to IRS.gov/rollovers. For information about waivers, scroll down to FAQs relating to waivers of the 60-day rollover requirement.

About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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