Minimum Distributions
We have a client who is taking minimum distributions of $83,333. On 8/13/2009 he took an extra $50,000. He went to his bank to get a home equity loan to pay back the $50,000 and there was a problem with the title, so the $50,000 was not repaid until 10/15/2009 (63 days). I understand in some circumstances the IRS will allow over the 60 days.
Can you tell me if this is possible with this situation? And what would it cost to do what they need to do with the IRS.
Permalink Submitted by Alan Spross on Tue, 2010-10-19 17:38
All the pertinent info should be contained in the following recent IRS Release. Client does not qualify for an automatic waiver, so the IRS would make their decision based on the facts of his case. Institution error as referenced refers to direct IRA custodian errors, but if the title problem is related to an institution error, it would probably improve the chances for an exception. There is a sub link there for the fee that would apply to the IRS request:
http://www.irs.gov/retirement/article/0,,id=160470,00.html