by Jesse Hansen
on August 29, 2016
The Internal Revenue Service (IRS) released Revenue Procedure 2016-47 on August 24, 2016, allowing for a waiver of the 60-day rollover requirement in Sections 402(c)(3) and 408(d)(3) of the Internal Revenue Code (Code). The new guidance allows for a self-certification procedure that a participant can use when rolling funds over from one qualified plan to another or rolling funds into an IRA.
Code Section 402(c)(3) allows any amount distributed from a qualified retirement plan to be excluded from income if it is transferred to an eligible retirement plan no later than 60 days following the day a distribution is received by a participant. This rule applies to all 401(k), 403(b), and eligible 457 governmental plans. Revenue Procedure 2003-16 established a letter-ruling procedure that allowed participants to apply for a waiver of the 60-day rollover requirement.
Revenue Procedure 2016-47 now allows plan participants to make written certification to a plan administrator that a rollover contribution satisfies specific conditions. Those conditions are:
Plan administrators may now rely on the participant’s self-certification unless the plan administrator has actual knowledge that is contrary to the self-certification. This self-certification is not deemed a waiver by the IRS of the 60-day rollover requirement, but the participant may report the rollover as a valid contribution until later informed otherwise by the IRS.