Any COVID extension for 60-day rollovers?
We set up a 401lk for a clientbwhonwanted go fund it later. He received his rollover funds on June 20th. MhHe did not roll over the funds in the new plan for 70-80days later in September. Is he stuck paying taxes or is there some kind of COVID relief? Ty.
Permalink Submitted by Alan - IRA critic on Tue, 2020-09-08 23:25
The 60 day rollover deadline applies for June distributions unless client qualifies for a CRD (100k max) of if the 60 day time limit can be extended under Rev Proc 2016-47 for certain qualifying reasons. If client is eligible for a CRD, the distribution can be repaid for up to 3 years from 6/20/2020. Are you sure the new account is a 401k (solo K ?) and what is the distributing account type?
Permalink Submitted by Ronald Birnbaum on Wed, 2020-09-09 12:42
Yes, both are 401k solo plans. What is CRD?
Permalink Submitted by Alan - IRA critic on Wed, 2020-09-09 16:48
Corona virus related distribution. Taxpayer must qualify for this based on meeting a requirement for being impacted by Covid.