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Accepting Rollover Contributions

Plan administrators accepting distributions from tax-qualified plans and IRAs now have simpler due diligence procedures. The new procedures in Revenue Ruling 2014-9 include these examples:

  • A plan participant delivering a check made payable to the plan administrator of the recipient plan and certifying the eligibility of the funds as rollover contributions.
  • Plan administrators verifying the payment’s source (on the rollover check or wire transfer) as the participant’s IRA or former retirement plan.
  • Plan administrators researching the Department of Labor’s EFAST2 database for the former plan’s Form 5500 filing to verify that the plan was a tax-qualified plan.

The instructions for line 19c of Form 5310, Application for Determination for Terminating Plan, mention one way of satisfying the due diligence for accepting rollover contributions, but don’t provide a full list. Plan administrators should see Revenue Ruling 2014-9 for a complete list of due diligence examples for accepting rollovers.

Additional resources

  • Verifying rollover contributions
  • Rollovers of retirement plan and IRA distributions
  • Rollover chart – permissible retirement plan rollover transactions
  • Internal controls protect your retirement plan
  • Tax information for retirement plan sponsors
Page Last Reviewed or Updated: 26-Feb-2015