60 Day Rule??
My client just sent me his checks for his 401k rollovers. They are dated 64 days ago. Both are made out to the fund company FBO his name. What are our options here? Can we proceed since it is made out to the fund company? Can we call and have them send another check? Thanks for the help.
Permalink Submitted by Alan Spross on Fri, 2009-12-18 23:24
The 60 days starts when the client received the check and ends when the check is placed in the possession of the receiving institution, so you may still be able to expedite the rollover and get it done within the mailing time margin of error.
But note that the 60 day time limit applies only to indirect rollovers, NOT to direct rollovers, and this is a direct rollover since the check is made out to the receiving custodian.
Permalink Submitted by Matthew McMillon on Fri, 2009-12-18 23:31
Does it make a difference that we are converting it to a ROTH?
Permalink Submitted by Alan Spross on Sat, 2009-12-19 01:06
No, that does not make a difference with respect to rollover time limits.
But to correct my prior response which focused on the dates and not the type of rollover, the 60 day rollover period applies to INDIRECT rollovers, but NOT to direct rollovers presumably because the client does not have access to the funds. Because the check was made out to the IRA custodian it will be a DIRECT rollover with no 60 day time limit.
I will revise the prior post to better clarify it. You should have no problem with the check as it stands now.
Permalink Submitted by Matthew McMillon on Mon, 2009-12-21 16:47
Thank you for the clarification.