Did you know that you can move funds from your Individual Retirement Arrangement and retirement plan to another IRA or plan? There are two ways to do so: you can have the funds directly transferred from one account to another IRA account or plan, or you can have a check sent directly to you.
If you have a check sent to you, you only have 60 days to deposit that check into the other IRA or retirement plan. If you miss the deadline, you may have to pay tax on the distribution, and you may have to pay an additional 10% tax on early distributions.
However, if you miss the 60-day deadline due to circumstances beyond your control, such as an error made by a financial institution, you could be eligible for a waiver. You can even use the model letter on IRS.gov to self-certify that you’re eligible for a waiver.