Typically an IRA, 401(k), 403(b) or other employer-sponsored retirement plan distribution can qualify for a tax-free rollover if contributed to another IRA or employer-sponsored retirement plan within 60 days. Taxpayers who don’t meet the time requirement face an income tax bill on the distribution.

On Wednesday the IRS unveiled a new procedure allowing taxpayers to “self-certify” why the 60-day time limit was missed. “Acceptable” IRS reasons for missing the deadline include but are not limited to:

  • misplaced check
  • error by distributing financial institution
  • death/illness of family member
  • principal residence severely damaged

Revenue Procedure 2016-47 provides a full list of reasons permitted by the IRS for missing the deadline and a sample self-certification letter for notifying a plan administrator/trustee that the rollover qualifies for a waiver of the time requirement.