IRA 60 Rollover
Individual took money from an existing Company X IRA (wired into his account on 06/19) with the intent of putting the money back into the same Company X IRA within 60 days. The monies taken from the IRA were used for a down payment for the individual to purchase a new home and the money to replenish the Company X IRA were coming from the sale of his existing home. At closing of the existing home the check to replenish the Pershing IRA was made out as “Company X FBO Individual Name”. The checks were sent (on 08/11) to Company X via overnight carrier – 2 day delivery – it was documented that it was sent BUT not delivered to Company X.
Does having the checks made payable directly to the trustee give individual any advantage?
What is the date used for the IRA to be replenished within 60 days? The date the account gets the money? The date it was mailed?
Permalink Submitted by Alan - IRA critic on Tue, 2017-08-15 19:08
60 days is up 8/18, so Company X must receive the rollover contribution by that date regardless of how submitted. Most custodians will use the date they receive the contribution even if the account is not credited with the deposit that same day. If they do not accept the rollover and refuse to deposit the rollover contribution the individual should consider rollover relief due to postal error per the following: https://www.irs.gov/pub/irs-drop/rp-16-47.pdf