IRS Changes

I have some good news regarding the IRS and how they handle rollovers to IRA’s. 
Previously, if you were moving money from a 401(k) to an IRA, or from one IRA to another, you could only have those funds in your possession for 60 days before depositing them into the next retirement account. If you missed that window you generally owed taxes on the full amount and, if you were under age 59½, an additional penalty on top of that.
Well the IRS is relaxing that rule a bit. They are now saying taxpayers can avoid the negative tax implications, in certain circumstances, including if they lost the distribution check or deposited it into an account they mistakenly thought was a qualified retirement account.
Now you can write a self- certification on why you missed the 60 day deadline. Just as a rule of thumb, ideally when rolling over from one account to another, have the transfer be from one financial institution to the other financial institution. That way you never take possession of the money…problem solved!