CD mistake

Submitted by Rick Tenison on Fri, 2020-02-21 18:39

I have a client that moved money to a bank CD expecting it to be in an IRA. The bank put it in a non qualified CD. How do we remedy this with the IRS?



Submitted by Alan - IRA critic on Fri, 2020-02-21 19:24

  • If under 60 days just complete the rollover. If over 60 days, Rev Procedure 2016-47 can be used to extend the 60 day rollover deadline. Reasons 1 or 3 could be used. The bank or some other IRA custodian would have to be willing to accept the self certification form completed by the client in order to accept a rollover contribution now. A link to the RR and certification form follows:
  • https://www.irs.gov/pub/irs-drop/rp-16-47.pdf

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