In August, the IRS revised its 60-day rollover deadline policy for taxpayers who miss the deadline – making it easier for people to recover from innocent mistakes.
Janet Novack, Forbes
magazine staff writer, explains in a recent article
that the existing law requiring any money received from an existing IRA or 401(k) be placed into another retirement account within 60 days or face taxation affected so many taxpayers the IRS recently decided to provide relief.
Previously if someone missed the 60-day deadline, even for an acceptable reason or innocent mistake, it was costly and time-consuming to avoid penalty. The IRS can still review a missed deadline to see if it finds it pentalty worthy, but the process for taxpayers is much easier than before.
In the article Novack notes the most efficient way to move money from retirement accounts is direct trustee to trustee transfer, then there is less chance of missing the 60-day rollover deadline.
You can read more on the IRS website
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