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<<Thanks for the detailed answer; I really appreciate it.>>

My pleasure...

<<Now, let's say that despite all my efforts the new broker fails to open the account on time. Would there be a problem with opening another IRA with some other company on the last day of the 60 day period (I have the funds to do this).>>

I'm not sure that I understand what you are asking. If you don't think that Broker #1 will do the job, tell him to STOP right now, and immediately go to broker #2 and make sure that the 60 day limitation is met. If you have the funds to make that happen, it's certainly something that you should consider.

IRS doesn't care where the money comes from to make the rollover (but I'm guesing that robbing a bank would be out of the least with local law enforcement authorities). But the LAST thing that you want would be TWO with Broker #1 and one with Broker #2. You'd avoid the tax on a failed rollover, but you'd have another mess on your hands.

<< In the worst case I would end up with two IRA's, one of which would be funded with money that would not be eligible for contribution to an IRA. If this worst case scenario were to occur, what would the tax consequences be when I do the necessary revocation of one of the IRA's? And is revocation of an IRA an easy process?>>

It's not THAT big of a deal. But it does involve some paperwork, it'll complicate your tax return, it'll likely make your return more audit prone (because of the multiple distributions out of the IRA account). So for those reasons, why screw around with it. Just tell Broker #1 to fly a kite NOW, and move to Broker #2.

But...if for some reason you simply can't do that, you are much better off having two rollover accounts (and having to clean up that mess) than to have NO rollover accounts opened within the 60 day period.

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