60 Day Rollover

Submitted by Janis Sleeter on Tue, 2016-09-27 21:45

I have 2 questions for calculating the 60 days
1) The IRA custodian is saying that you start counting the 60 days the day they issued the check and put it in the mail to the client. I thought it would start the day after they issued the check.
2) Also, they are saying that if the 60th day is on a weekend, the funds have to be in the account the Friday before, not the first business day following.

Also, where do I find the format for the late 60 day rollover certification?

Appreciate your help



Submitted by Alan - IRA critic on Tue, 2016-09-27 23:53

Submitted by Janis Sleeter on Wed, 2016-09-28 14:52

Do you have a reference in an IRS pulication about the 60 days starting on the day the person receives the check?The custodian is not very flexible.

Submitted by Alan - IRA critic on Wed, 2016-09-28 21:03

From p 21 of Pub 590 A:

Time Limit for Making a Rollover ContributionYou generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer’s plan. Example. You received an eligible rollover distribution from your traditional IRA on June 30, 2015, that you intend to roll over to your 403(b) plan. To postpone including the distribution in your income, you must complete the rollover by August 29, 2015, the 60th day following June 30.

Submitted by David Mertz on Wed, 2016-09-28 23:21

  • Regarding the date which determines the start of the 60-day window, IRC sections 402(c)(3)(A) and 408(d)(3)(A)(i) make it clear that it’s determined by the date that the funds come under the control of the payee.  With a mailed check, this is the date on which it becomes possible for the payee to have the check in hand.  Generally this would mean that the date of receipt is the date on which the check appears in your mailbox since it would not be possible for you to negotiate the check prior to that date.  For example, this interpretation is used by the IRS in PLR 201330047 to determine that no waiver was needed.
  • Also note that if the check is payable to your IRA with the custodian, rather than a check made payable to you personally, the 60-day limit does not apply because the funds never will have come under your control.
  • Unlike PLR 201330047 where it was determined that no waiver was needed, PLR 200930052 grants a waiver based on the rollover being completed on the 61st day, the next business day after the end of the 60-day window because the 60th day fell on a Sunday.  Interestingly, this PLRs make no reference to section 7503 to determine that no waiver was needed.

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