Taxpayer’s Need to Care for Ill Father Ruled a Valid Reason for IRS to Allow Late IRA Rollover

In Private Letter Ruling 200935047 the IRS allowed a late rollover by a taxpayer into her IRA account, ruling that her need to care for her ill father was a valid reason for allowing for a late IRA rollover.

The IRA holder was a 74 year old individual who had taken two distributions from IRA accounts and deposited them into an non-IRA account. Shortly after that event, her father fractured his spine and required surgery. The account holder dropped everything and went to help take care of her father, and for the next three months she spent almost all of her time dealing with her father’s medical problems and handling his eventual transfer to a nursing home.

Key in the positive outcome was that the taxpayer was able to show both that she always intended to roll the funds over and she did not use the funds for any other purpose in the interim. As well, the taxpayer remembered to ask for the IRS’s permission to make the rollover and obtained the necessary private letter ruling to allow the post-60 day rollover.

Advertisement