IRS waives 60-day rollover deadline for IRA owner whose failure to accomplish rollover was due to abusive actions of her spouse

In a private letter ruling, the IRS has granted a waiver of the 60-day rollover period for IRA distributions under Code Sec. 408(d)(3) to an IRA owner whose failure to accomplish a rollover within the 60-day period was due to the abusive actions of her spouse that prevented her from managing her financial affairs.

The IRA owner represented that she had a difficult marriage with her spouse who abused her. She asserted that the spouse forced her to sign a distribution request form and he later picked up the distribution check, which was deposited in a non-IRA account. The IRA owner represented that at the time of the transfer of the IRA funds, she was afraid to question her spouse’s actions. In addition, she had been forced to leave the principal residence where she and the spouse lived together. The spouse was now deceased and the IRA owner had control over her funds. The IRA owner further represented that the funds had not been used for any purpose.

The IRS explained that the information and documentation submitted by the IRA owner were consistent with her assertion that her failure to accomplish a timely rollover resulted from the abusive actions of her spouse, which prevented her from managing her financial affairs. Thus, the IRS waived the 60-day rollover requirement for the distributed amount.

Source: IRS Letter Ruling 201415014.

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