RMD 60 day rollover waiver

[Guest DeeBee]

What options does a client have if they missed their 60day window to rollback excess RMD funds back to their IRA? The Client is 73 and took an in-kind distribution to their Trust account.

My clearing house said they are out of luck and with a letter the IRS should grant them an exception.

Any help would be great.

Here is the rule

The client may roll the same shares back in the account that they took as a distribution; however they must be very careful in doing this. Share prices change daily (depending on the security) and the anticipated amount returned to the account could be more or less than necessary (creating a more complex accounting problem). While Fidelity will honor this request, you need to strongly encourage the client to consult a tax advisor before making the request to ensure the client is aware of any tax implications. Also, in this case, the distribution took place on 10/30/08, more than 60 days ago. This could raise a red flag at the IRS since the 1099-R for 2008 will show the full distribution and the off-setting 5498 will not show the rollover until 2009.

[david rigby]

Is the participant looking for a waiver. It might be available. See page 24 of IRS Publication 590