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Plan Administrators Can Now Rely on a Participant’s Self-Certification of Late Roll-Overs


IRS Revenue Procedures 2016-47 recently was published. These new procedures include a self-certification process for taxpayers who receive distributions but fail to meet the 60-day limit for roll-overs into a new plan. A taxpayer is allowed to use self-certification if he falls into one of eleven situations, including: distribution was a check that was misplaced and never cashed; the taxpayer or a member of the taxpayer’s family was seriously ill; or the taxpayer’s principal residence was severely damaged.

The self-certification process is much easier for taxpayers as now they do not need to request a waiver from the IRS to maintain the tax-exempt status of their distributions even if they do not roll over within the 60-day period. Plan administrators may safely rely on the self-certification unless they have actual knowledge that the information provided in the self-certification is false. Plans should prepare to begin relying on these self-certifications as it makes the late roll-over contribution issue much easier on all parties involved.


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