Individual Retirement Arrangements (IRAs) > Rollovers - Individual Retirement Arrangements (IRAs)

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Frequently Asked Tax Questions

Individual Retirement Arrangements (IRAs) - Rollovers - Individual Retirement Arrangements (IRAs)

Rev. date: 1/2009

How long do I have to roll over a distribution from a retirement plan to an IRA account?

1099-R
Individual Retirement Arrangement
Lump-Sum Distribution
Penalty, Early Distributions from IRAs and Plans
Plan
Qualified Plan
Qualified Withdrawals
Retirement Plan

You must complete the rollover by the 60th day following the day on which you receive the distribution. (This 60-day period is extended for the period during which the distribution is in a frozen deposit in a financial institution.
A written explanation of rollover must be given to you by the issuer making the distribution.
The IRS may waive the 60-day requirement in certain situations, such as in the event of a casualty, disaster, or other event beyond your reasonable control.
To obtain a waiver in most cases, a request for a ruling must be made including the applicable user fee.

Rev. date: 1/2009

If I can't withdraw funds penalty free from my 401(k) plan to purchase my first home, can I roll it over into an IRA and then withdraw that money to use as my down payment?

1099-R
Individual Retirement Arrangement
Lump-Sum Distribution
P5329
Penalty, Early Distributions from IRAs and Plans
Pension and Annuity Income
Profit Sharing Plan
Qualified Plan
Retirement Plan

You can roll funds from a 401(k) to an IRA to be able to take a penalty free distribution to purchase your first home if:

You are receiving a distribution from a 401(k) that is eligible to roll over into an IRA
You meet all of the qualifications for an IRA distribution for a first-time homebuyer

Your plan administrator is required to notify you before making a distribution from your 401(k) plan whether that distribution is eligible to be rolled over into an IRA. To see if you qualify for a distribution to be used as a first-time homebuyer, refer to Chapter 1 of

Publication 590, Individual Retirement Arrangements (IRAs).


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