Individual Retirement Arrangements (IRAs): Rollovers
This is archived information that pertains only to the 2005 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
How long do I have to roll over a distribution from a retirement
plan to an IRA account?
You must complete the rollover by the 60th day following the day on which
you receive the distribution. (This 60-day period is extended for the period
during which the distribution is in a frozen deposit in a financial institution.)
The IRS may waive the 60 day requirement in certain situations, such as in
the event of a casualty, disaster, or other event beyond your reasonable control.
To obtain a waiver, a request for a ruling must be made including the applicable
user fee. Refer to Tax
Regs in English to get the Internal Revenue Procedure for requesting a
ruling. A written explanation of rollover must be given to you by the issuer
making the distribution. For information on distributions which qualify for
rollover treatment, refer to Tax Topic 413, Rollovers from Retirement
Plans . For information on the Direct Rollover Option, refer to chapter
1 of Publication 590 Individual Retirement Arrangements
(IRAs).
If I can't withdraw funds penalty free from my 401(k) plan to purchase
my first home, can I roll it over into an IRA and then withdraw that money
to use as my down payment?
Yes, if you are receiving a distribution from a 401(k) that is eligible
to roll over into a IRA and you meet all of the qualifications for an IRA
distribution for a first-time homebuyer. Your plan administrator is required
to notify you before making a distribution from your 401(k) plan whether that
distribution is eligible to be rolled over into an IRA. To see if you qualify
for a distribution to be used as a first-time homebuyer, refer to chapter
1 of Publication 590, Individual Retirement Arrangements (IRAs) .
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