A spouse’s final illness isn’t grounds for waiving the 60-day rollover period, the Service says in a private ruling. A wife whose husband was terminally ill withdrew funds from her IRA to pay off a mortgage. She expected to replenish the IRA within 60 days by using the proceeds from a life insurance policy. Her spouse died on the 57th day of the 60-day period, and she didn’t get the policy proceeds in time. The IRS refused to give her extra time for the rollover because she didn’t get the demands on her time from her husband’s final illness weren’t the reason she missed the 60-day cutoff.
But a taxpayer with vision and hearing loss is granted additional time. Here, a filer with a medical condition got a notice from his bank that his IRS CD was maturing. Because of his illness, he didn’t realize that the CD pertained to his IRA, and he had the proceeds put in his taxable account at the bank. His return preparer found the error three months after the 60-day deadline passed, and IRS OK’d a waiver.