I took out a 60 day rollover for a Roth IRA.

About 50 days in I went into the bank and asked them to deposit the money back into the account.

The bank ended up depositing the funds into the wrong account. By the time everything got resolved it had been over 60 days.

The bank can't give me any advice on what tax implications (if any) this late deposit will cause. They stated that the day the money is put back into the account is not reported to the IRS.

Do I need to do anything on my end? Should I be worried?

  • 2
    You need to clarify who the custodian of your Roth IRA is. It might be an entity related to your bank (but legally distinct from the bank), or it might be a completely different unrelated entity. If the latter, then it is your responsibility to ensure that the payment reaches the custodian in timely fashion, and what the custodian reports is what matters to the IRS, not what your bank reports. – Dilip Sarwate Jun 5 '19 at 3:21
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    Even after your edit, you still haven't bothered to tell us WHO is the custodian of your Roth IRA. Look at the last piece of paper you received about your Roth IRA; it will have the name of the custodian listed on it. Tell usnthat name. Look at the name of the bank printed on your checkbook. Tell us that too. -1 pending your providing this information – Dilip Sarwate Jun 5 '19 at 13:26
  • @DilipSarwate I edited the question to take out some filler. I can't find where it says the who the custodian is on the statements. The brokerage account where the IRA account is held is Merrill Edge, the Bank is Bank of America who owns Merrill Edge. I can't imagine it's anyone but Merrill since I opened the account directly with them. – newUserNameHere Jun 5 '19 at 16:17

You appear to meet the requirements for an automatic waiver of the 60 day requirement so it should not be a taxable event. Make sure you keep careful records to support that you meet each of the following requirements for an automatic waiver.

From the IRS: You qualify for an automatic waiver if all of the following apply:

  1. The financial institution receives the funds on your behalf before the end of the 60-day rollover period.
  2. You followed all of the procedures set by the financial institution for depositing the funds into an IRA or other eligible retirement plan within the 60-day rollover period (including giving instructions to deposit the funds into a plan or IRA).
  3. The funds are not deposited into a plan or IRA within the 60-day rollover period solely because of an error on the part of the financial institution.
  4. The funds are deposited into a plan or IRA within 1 year from the beginning of the 60-day rollover period.
  5. It would have been a valid rollover if the financial institution had deposited the funds as instructed.

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