Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009


Your Guide



The act of revoking a contribution, rollover contribution , Roth conversion, or transfer to an IRA.

An individual who establishes an IRA must be permitted to  revoke the account, or endowment contract by mailing or delivering a notice of revocation on or before seven days after the earlier of the date the account is established  or purchased. An individual who revokes an IRA must receive the entire amount of deposited to the  account, annuity, or endowment contract . The balance cannot be reduced by  sales commissions, administrative expenses or fluctuation in market value.

Form 5498 must be filed to report any regular, rollover, Roth  conversion, SEP IRA, or SIMPLE IRA contribution to an IRA, even if the transaction  is subsequently revoked

Form 1099-R must also be issued to report the revocation. However, the indication of whether the amount is taxable is determined by the type of transaction being revoked.

Referring Cite

Treas. Reg. 1.408-6(d)(4)(ii)(A)(2), Instructions for Forms 1099-R and 5498

Additional Helpful Information

  • The revocation procedure must be explained in the IRA agreement, and may require that the notice be in writing , provided verbally, or it may require both a written and verbal  notice.
  • If a verbal notice is required or permitted, the procedure must permit it to be delivered by telephone call during normal business hours.
  • If a written notice is required or permitted, the procedure must provide that, if it is mailed, it will be considered mailed on the date of the postmark (or if sent by certified or registered mail, the date of certification or registration) if it is deposited in the mail in the United States in an envelope, or other appropriate wrapper, first class postage prepaid and  properly addressed

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules