IRA Rollover rules

You can roll over funds from one IRA to another tax-free as long as you complete the rollover within 60 days. What if you miss the deadline? You may owe tax and an early-distribution penalty if you’re under age 59½. The IRS may waive the penalty if there are extenuating circumstances. In a recent private letter ruling, the IRS waived the 60-day requirement after a taxpayer failed to roll over the proceeds received from his IRA due to his medical condition, which included confusion, memory loss, and other cognitive impairment. (PLR 201709023)