Mixed news for folks with late IRA rollovers…in two private rulings from IRS. A women who suffered severe distress after her husband’s death gets relief. She was the primary caregiver for her husband, who had been ill for about 10 years. After he died, she was so grief-stricken that she didn’t realize she’d receive a payout from his IRA until a year had passes. She also had several major health issues, including loss of vision. So the Revenue Service waived the 60-day rollover deadline.
But a couple who gave verbal instruction to their bank didn’t fare as well. They had separated IRAs at a financial institution and claimed they told the bank to roll over the funds to IRAs at another bank. However, the amounts were transferred to taxable accounts instead. Because the couple had no proof of their oral directions to the first bank, the IRS wouldn’t waive the 60-day rule and they’re taxed on the transfer.