IRS Clarifies When Retirement Plan Overpayments Can Be Rolled Over

What You Need To Know

• A worker who receives an inadvertent overpayment and makes a rollover can keep the favorable tax treatment unless the employer seeks to recover the money, the guidance states.
• IRS and Treasury are asking for feedback by Dec. 16 on the guidance.
• The various forms of relief apply only if the error was inadvertent so the payee was innocent, says Mark Iwry.