Waiting 2 weeks before depositing indirect rollover check. When does the clock start for the 60 day?
I requested a check on 7/1 and received the check on 7/5. I realized that I won’t be able to roll over the funds back until 9/15, so can I hold off not depositing the check until late July like the 25th, so that I don’t miss the 60 days rollover deadline?
I’ve read the IRS publication, but the “receive distribution” doesn’t seem to be clear. Is it receive the check or receive the actual funds in your checking account after you deposit the check?
In my case, will that work if I hold off and don’t deposit the check until later this month?
Can I say that the check was lost, and have my financial company reissue another check for later this month to restart the 60 day rollover?
thank you in advance
Permalink Submitted by Alan - IRA critic on Tue, 2013-07-16 18:36
The 60 day period starts on the received date of the check, not the day you cash it. Probably the best way around this is to now do a direct trustee transfer of another similar amount to a new IRA account. Then before the 60 days is up, take a distribution from the new IRA to complete the original rollover by 9/3. On 9/15 or within 60 days replace the distribution from the new IRA.
Permalink Submitted by dan kim on Tue, 2013-07-16 19:20
how would the IRS know what date I received the check in the mail to start the clock? The only problem with your solution is that I took out the full balance so there isn’t another distribution I can take. I think I’m going to have to ask for a new check and hope the new 60 day clock starts from the time I receive the new check in the mail?
Permalink Submitted by Alan - IRA critic on Tue, 2013-07-16 20:34
The 60 day rollover rule is mostly enforced by the IRA custodian since the IRS does not know the actual dates you make transactions, only the year. Custodians have an idea of the date especially if you use the same custodian for both the distribution and rollover. Of course, an IRS audit is always possible. As far as I know, the IRS has not addressed the “lost check” scenario and there is no way to know in advance what your current custodian will do if you pursue that course of action and attempt to roll back the funds to their IRA account.