A bank’s bad advice lets a woman off the hook on a botched IRA rollover. She believed from talking with a worker at a bank where she invested her IRA that she had 90 days to roll over the funds to an IRA at another financial institution. She completed the rollover on the 70th day…10 days after the correct deadline. In a private ruling, the Service relaxed the rules and granted her the additional time.
Nowadays, folks in this situation needn’t seek an IRS ruling for relief.
They can self-certify that they qualify for a waiver of the 60-day rule, provided they meet certain conditions. The late rollover must be for one of 11 reasons, such as bank error, death or serious illness of the account owner or family member, misplaced check or severe damage to one’s home. And the rollover must be completed within 30 days after the reason for failing to timely do it in the first place ceases.