Client got a check today (5/1/05), a distribution from a former employers 401K. The check is dated 1/19/06. They did not request the distribution. When did the 60 day rollover period begin, today or 1/19? If 1/19, seems to me that they qualify for the hardhsip exception. How do I go about getting a private letter ruling from the IRS? (The check is for $1300.) Thanks in advance.
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hardship exception
The hardship exception does NOT waive the 10% penalty or the 60-day rollover requirement. What is the postmark date? -
Postmark -- exactly...
Also see my post on the ATX board, in part:Originally posted by jainen
Pub 590, pg 22, "Time Limit for Making a Rollover Contribution"Comment
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call the fund
I think that if he didn't get his mail because he had moved away without telling the fund administrator, then there was constructive receipt. Otherwise I would call the fund and ask for verification of their delay. They probably made a mistake and if you politely explain the problem they shouldn't have any objection to helping fix it.
By the way, don't forget to look for withholding. It could be that he needs to rollover MORE than the check amount to avoid penalty.Comment
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