In January 2008, I wanted to roll over funds in a 401K fund from a former job to an existing IRA account of mine. I contacted the 401K plan administrators (a bank), and directed them cut the check - around $5545 - and make it out to the IRA fund - not me - but to send it to my mailing address. It arrived at my mailing address, but I promptly put it in a file folder, and misplaced it for over a year. In April 2009 - before I filed my 2008 taxes
- I took the check to the local
office of my IRA fund, gave it to them, and asked that it be applied to a 2008 contribution. The local office of the fund noted that the date on the check was old, but they called the issuing bank, who verified that the funds were okay and the check was good, and the check was received and accepted by my local IRA office. In May, 2009, I was having a long-distance conversation with a person in the home office of my IRA fund, and he happened to notice that the $5545 contribution was credited to the 2009 tax year, and not 2008. (Why, I'm not sure.) But then he then explained the 60-day "rollover with no tax penalty" rule. He said that due the issuing date on the rollover check (January, 2008), and the fact that the funds were rolled over to the IRA well after the 60 days (in April, 2009), that there would be "tax implications" for me. (The 20% penalty, I gather.) Here's my question. Is it worth presenting a case to the IRS that they should waive (and inform my IRA fund administrators while they're at it) the 60-day rule SINCE the rollover check wasn't made out to me, but to the IRA plan? And if so, how do I go about issuing this "appeal" to the IRS? My argument is that since the check wasn't made out to me, I had no control over the funds, so I really didn't violate the spirit of the 60-day rule. (I've filed for an extension on my 2010 taxes, but I need this question answered so I can file them correctly.) I was born in 1951. Many thanks for your help.
(Addendum: at some point, if my memory serves, the 401K bank MAY have contacted me in August, 2008, and mentioned that the January, 2008 check had not been cashed. My possible recollection is that I may have forwarded the original check to the main office of the IRA fund right after I got it with a deposit slip, and that this original check was lost either in the mail, or by the IRA fund. The 401K fund may have issued a 2nd check in August, 2008 - again, made out to the IRA fund, not me - and sent it to me at that time. THIS may have been the check I misplaced, and then deposited in April, 2009. But I haven't been able to locate the stub.)