IRS Provides Safe Harbor for IRA Rollovers

The Internal Revenue Service has released a new revenue ruling that offers simplified safe harbor due diligence procedures that a retirement plan administrator can use in order to be deemed to have reasonably concluded that an amount was a valid rollover contribution for an individual retirement account.

Revenue Ruling 2014-9 provides two new streamlined safe harbor due diligence procedures that, in the absence of evidence to the contrary, will give rise to the presumption that the administrator of the receiving plan reasonably concluded that a rollover was valid.

The revenue ruling includes two hypothetical examples of how plan administrators can arrive at such conclusions.

Revenue Ruling 2014-9 will appear in Internal Revenue Bulletin 2014-17, dated April 21, 2014.