Saturday, January 25, 2014
Diane B. Burks (Katten Muchin Rosenman LLP) recently published an article entitled, IRA Rollovers: Practical Advice When Seeking a Waiver of the 60-Day Rollover Period, Probate & Property Vol. 28 No. 1 (January/February 2014). Provided below is the beginning of her article:
Clients commonly roll over IRAs from one financial institution to another. Perhaps the client has recently changed his banking relationship, wants to consolidate numerous retirement accounts, or is looking for different investment options. A mistake in the rollover process—the failure to complete the rollover within 60 days of a distribution—can be costly to the client from an income tax standpoint. There is, however, the ability to apply for relief from the IRS. The requirements for requesting a waiver of the 60-day period provide inherent practical advice for attorneys advising clients about the rollover process. With attention to these requirements, attorneys will be in a better position to seek relief for their clients if a botched rollover occurs.