IRA distribution 20 days prior to turning 59.5
An error made was in calculating when a client turned 59.5. The distribution was made 20 days prior to turning 59.5. Does anyone know of a situation where the IRS gave relief knowing that it was an honest mistake in calculating the client turning 59.5?
Permalink Submitted by Alan Spross on Tue, 2009-06-16 17:57
Not specifically. But if still within 60 days of the distribution and client has not used up their rollover option, the amount could be returned to the IRA and taken back out after 59.5. Also, determine if the client could qualify for another exception to the early withdrawal penalty.
The client was evidently not planning a rollover, or they might be able to get relief if 60 days has passed. But it sounds like the client needed the funds or you would have mentioned the rollover issue.