The Internal Revenue Service on Wednesday announced individual retirement account owners and retirement-plan participants who inadvertantly exceed a 60-day limit to move their accounts during a “rollover” can receive a waiver of the deadline.
Without the waivers, the amount in the IRA or retirement plan such as a 401(k) would be taxable. Account holders younger than 59 1/2 years old would have to pay an additional 10 percent penalty.
The rule change is effective immediately.