What if I missed the 60-day IRA rollover deadline?

What if I missed the 60-day IRA rollover deadline?

You may still be able to put the money back. The IRS has three ways to fix a late rollover. An automatic waiver covers bank mistakes. A free self-certification letter covers 12 listed reasons. A private letter ruling covers the rest. Starting May 1, 2027, a new IRS correction program adds a fourth way.

What is the 60-day rollover rule?

When money comes out of an IRA or a work plan and you want it back in a retirement account, you get 60 days. The IRS says you "must complete the rollover by the 60th day following the day on which you receive the distribution."

Miss it, and the money is usually treated as taken out for good. That means income tax. It can also mean a 10% extra tax, unless an exception applies.

A direct transfer has no clock at all. The money goes from one IRA company straight to the next, so you never hold a check. Our post on rollovers and transfers walks through the difference.

Can I still put the money back if I am late?

Often, yes. The path that fits depends on why you were late.

The automatic waiver is for bank mix-ups. The bank got your money before day 60, you followed its steps, and the bank alone slipped. The money has to land within one year from the start of the 60 days.

What does the self-certification letter say?

It is a short model letter from the IRS. You check the reason you were late, sign it, and hand it to the company taking the late rollover. You do not send it to the IRS. There is no fee.

The letter lists 12 reasons. Here they are in plain words:

• The bank or plan made an error.
• A check got lost and was never cashed.
• The money went into an account you thought was an IRA or plan.
• Your home was badly damaged.
• A family member died.
• You or a family member was seriously ill.
• You were in jail.
• A foreign country put limits on the money.
• The mail messed up.
• An IRS levy took the money and later gave it back.
• The plan paying you out was slow to share facts the new IRA needed.
• The money was sent to a state unclaimed property fund.

There are two catches. You have to finish the rollover as soon as you can, which the IRS treats as within 30 days after the problem ends. And the letter is not an IRS sign-off. The IRS can still look at it in an audit. No company has to take a late rollover, either.

Composite example for education. Not a real client. Not a recommendation.

Lee left his job and asked for his old 401(k) by check. He meant to roll it into his IRA. On day 12 he landed in the hospital. He got home on day 71. The check sat in a kitchen drawer the whole time. Eighteen days after he got home, he filled out the letter. He checked the box for serious illness, signed it, and handed it to his IRA company with the check. The company took the late rollover. Lee kept a copy with his hospital papers, in case the IRS ever asks.

What is the new IRS correction program for IRAs?

On October 22, 2026, the IRS announced a new way to fix some IRA mistakes. It is called the IRA Compliance Resolution System, or ICRS. The rules are in Rev. Proc. 2026-33, and they start May 1, 2027.

For now, ICRS has one part. You ask the IRS to accept a fix, and it reviews your request. There is no do-it-yourself version yet.

It covers four kinds of mistakes:

• A 60-day rollover that was not finished on time.
• A required minimum distribution that came out short because the IRA company made an error.
• An IRA the company set up as the wrong kind of account.
• An heir who is not a spouse rolled money over when they could not, because a company made an error.

Prohibited transactions are not on that list. The program also turns away cases that involve misuse of IRA assets or abusive tax schemes.

How will late rollover requests change in 2027 and 2028?

During 2027, you can pick either a private letter ruling or ICRS. In 2028, the IRS expects late rollover requests to go only through ICRS.

Under ICRS, only the IRA owner can ask for a 60-day fix. The IRA company cannot file it for you, but you can name someone to act for you. You also have to be caught up on filing your taxes. The fee for a regular request filed before January 1, 2028, is $3,500.

The free paths are staying. The IRS says the automatic waiver and the self-certification letter "remain available and are not affected."

Does a late rollover still count toward the one-per-year rule?

Yes. The IRS can waive the 60-day clock. It cannot waive the rule that allows one IRA-to-IRA rollover every 12 months. Direct transfers and Roth conversions do not count toward that limit. Our post on why IRA-to-IRA rollovers are limited explains the limit.

Mountain West IRA, a self-directed IRA Administrator in Boise, Idaho, processes each move at the account owner's written direction. We can't tell you which reason fits your case. That call belongs to you and your tax pro, and here is why administrators stay out of tax advice.

If you want to walk through how a direct transfer works before you move money, a free consultation with our team is a good place to start.

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If this topic sparked questions, reach out to our team. We are here to help you understand the rules, the process, and how self-directed retirement accounts work.

Not investment, tax, or legal advice. Check with your own financial advisor about your specific situation.

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Sources

• IRS news release IR-2026-126, Oct. 22, 2026: https://www.irs.gov/newsroom/treasury-irs-update-retirement-plan-correction-program-and-establish-correction-program-for-individual-retirement-accounts
• Rev. Proc. 2026-33 (ICRS; May 1, 2027 start; four eligible failures; owner-only applicant for 60-day failures; $3,500 fee before Jan. 1, 2028; 2027 and 2028 transition; one-rollover limit does not apply to transfers or conversions): https://www.irs.gov/pub/irs-drop/rp-26-33.pdf
• IRS, Retirement plans FAQs relating to waivers of the 60-day rollover requirement: https://www.irs.gov/retirement-plans/retirement-plans-faqs-relating-to-waivers-of-the-60-day-rollover-requirement
• Rev. Proc. 2020-46 (12 self-certification reasons, 30-day rule): https://www.irs.gov/pub/irs-drop/rp-20-46.pdf
• IRS, Retirement plans FAQs regarding IRAs (60-day quote): https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras