A. IRS imposes harsh penalty and tax on violation of the 60-day rollover deadline, but here are 11 exceptions:
- An error was committed by the financial institution receiving the contribution or making the distribution to which the contribution relates.
- The distribution, having been made in the form of a check, was misplaced and never cashed.
- The distribution was deposited into and remains in an account that the taxpayer mistakenly thought was an eligible retirement plan.
- The taxpayer's principal residence was severely damaged.
- A family member of the taxpayer died.
- The taxpayer or a member of the taxpayer's family was seriously ill.
- There were restrictions that were imposed by a foreign country.
- A postal error occurred.
- The distribution was made on account of a levy, and the proceeds of the levy have been returend to the taxpayer.
- The party making the distribution to which the rollover relates delayed providing information that the receiving plan or IRA required to complete the rollover, despite the taxpayer's reasonable efforts to obtain the information.