Rollover check deposited 30 days after mailed
Individual deposited a check from his IRA 30 days after it was mailed – when does his 60 day window start?
Everything I’e read, including here, says it starts not when the check is cut, and not when the check is mailed, but “when received,” but what constitutes receipt?
My gut reaction is that the clock started when he received the check, however, he didn’t have access to the funds in that state, so…any thoughts?
Appreciate any input!
Permalink Submitted by Jose Morales on Tue, 2016-12-20 23:05
The clock starts when it was received, not when it was deposited. There is room for a certain amount of reasonablness, such as mailing time for a check sent by USPS, however there better evidence if an individual wants to claim they did not receive the distribution for an extended period of time (such as 30 days from the processing date).
Permalink Submitted by Ben Meyer on Wed, 2016-12-21 05:38
By saying that the 60 day clock starts when the funds are received, the meaning is that the clock starts when the funds are reasonably available for use by the recipient. That would be the time the check is delivered by USPS, unless there are some extenuating circumstaces such as hospitalization, etc. A deliberate delay by the recipient in cashing the check would not be a valid way to extend the period. In any event, with the release of Revenue Procedure 2016-47 earlier this year, the recipient now needs to give a certification to the institution receiving the rollover to explain any delay that appears to be beyond 60 days. The allowable reasons under the new Procedure for extending the 60 day period are quite liberal and varied in favor of the IRA owner. However, deliberate delay is not one of the acceptable reasons for waiver.