4010 / When may rollover contributions be made from an IRA to a tax sheltered annuity?

An individual may receive a distribution from his or her traditional IRA and within 60 days roll it over into a tax sheltered annuity to the extent that the distribution would be includable in income if not rolled over.¹ After-tax contributions including nondeductible contributions to a traditional IRA may not be rolled over from a traditional IRA into a Section 403(b) tax sheltered annuity.²

The IRS may waive the 60-day rollover requirement if failure to waive it would be against equity or good conscience, including in the event of a casualty, disaster, or other event beyond the reasonable control of the individual subject to the requirement ( Q 4016). In determining whether to grant a waiver, the IRS considers (1) certain errors committed by a financial institution; (2) inability to complete a rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; (3) the use of the amount distributed (for example, in the case of payment by check, whether the check was cashed); and (4) the time elapsed since the distribution occurred.

See Q 4017 for a discussion of the new self-certification process that can allow a taxpayer to obtain a waiver of the 60-day time limit.