IRS written determination 201428013

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
APR 17 2014
Uniform Issue List: 408.03-00
xxxxxxxxxxxxxx
xxxxxxxxxxxxxx
xxxxxxxxxxxxxx
Legend:
Taxpayer A
IRAB
Insurance Company C
Account D
BankE
Amount 1
Dear
XXXXXXXXXXXXXX:
= xxxxxxxxxxxxxx
= xxxxxxxxxxxxxx
xxxxxxxxxxxxxx
= xxxxxxxxxxxxxx
= xxxxxxxxxxxxxx
= xxxxxxxxxxxxxx
= xxxxxxxxxxxxxx
201428013
This is in response to a request for a letter ruling dated September 30, 2013, as
supplemented by correspondence dated February 4, 2014, in which you request
a waiver
of the 60-day rollover requirement contained in section 408(d)(3) of the
Internal Revenue Code (the "Code").
The following facts and representations have been submitted under penalty
of
perjury in support of the ruling requested.
Taxpayer A represents that she received a distribution totaling Amount 1 from
IRA B maintained by Insurance Company
C. Taxpayer A asserts that her failure
to accomplish a rollover within the 60-day period prescribed by section 408(d)(3)
of the Code, was due to a miscommunication with a representative of Bank E
which
led to Amount 1 being placed in a non-IRA account. Taxpayer A further
represents that Amount 1 has not been used for any other purpose.

.-------------------
Page 2
201428018
Taxpayer A represents that she had been suffering losses in her account and
requested a distribution from IRA
B. On February 6, 2012, she received a
distribution check representing a full distribution from IRA
B. On February 17,
2012, Taxpayer A took the distribution check to
BankE intending for the funds to
remain in an IRA. Taxpayer A represents she told the representative that she
wished to set up a CD account with Bank E and assumed that the CD would be
an
IRA. However, based
on these instructions, and the fact that the distribution
check did not indicate it was from
an IRA, the representative of BankE created a
non-IRA account. Taxpayer A did not discover the miscommunication error until
early
2013,
when she received a 1099-R indicating the taxable distribution.
Based on the facts and representations, you request a
ruling that the Internal
Revenue Service waive the 60-day rollover requirement contained
in section
408{d)(3)
of the Code with respect to the distribution of Amount 1 from IRA B.
Section 408(d)(1) of the Code provides that, except as otherwise provided in
section 408(d), any amount paid or distributed out of an IRA shall be included in
gross income by the payee
or distributee, as the case may be, in the manner
provided under section 72
of the Code.
Section 408(d)(3)
of the Code defines, and provides the rules applicable to IRA
rollovers.
Section 408(d)(3)(A)
of the Code provides that section 408(d)(1) does not apply
to any amount paid
or distributed out of an IRA to the individual for whose benefit
the IRA is maintained
if-
(i) the entire amount received (including money and any other property) is paid
into an IRA for the benefit
of such individual not later than the 60th day after the
day on which the individual receives the payment or distribution;
or
(ii) the entire amount received (including money and any other property) is paid
into an eligible retirement plan (other than
an IRA) for the benefit of such
individual not later than the 60th day after the date on which the payment
or
distribution is received, except that the maximum amount which may be paid into
such plan may not exceed the portion
of the amount received which is includible
in gross income (determined without regard to section 408(d)(3)).
Section 408(d)(3)(B)
of the Code provides that section 408(d)(3) does not apply
to any amount described
in section 408(d)(3)(A)(i) received by an individual from
an IRA if at any time during the 1-year period ending
on the day of such receipt
such individual received any other amount described
in section 408(d)(3)(A)(i)
from an IRA which was not includible
in gross income because of the application
of section 408(d)(3).
Section 408(d)(3)(D)
of the Code provides a similar 60-day rollover period for
partial rollovers.

Page 3
201428013
Section 408(d)(3)(E) of the Code provides that the rollover provisions of section
408(d) do not apply to any amount required to be distributed under section
408(a)(6).
Section
408(d)(3)(1) of the Code provides that the Secretary may waive the
60-day requirement under sections 408(d)(3)(A) and
408(d)(3)(0) where the
failure to waive such requirement would be against equity
or good conscience,
including casualty, disaster, or other events beyond the reasonable control
of the
individual subject to such requirement. Only distributions that occurred after
December 31,
2001, are eligible for the waiver under section 408(d)(3)(1).
Rev. Proc. 2003-16, 2003-4 I.R.S. 359 (January 27, 2003) provides that
in
determining whether to grant a waiver of the 60-day rollover requirement
pursuant to section
408(d)(3)(1)
of the Code, the Service will consider all relevant
facts and circumstances, including: (1) errors committed by a financial institution;
(2) inability to complete a rollover due to death, disability, hospitalization,
incarceration, restrictions imposed by a foreign country
or postal error; (3) the
use
of the amount distributed (for example, in the case of payment by check,
whether the check was cashed); and (4) the time elapsed since the distribution
occurred.
The information presented and documentation submitted by Taxpayer A are
consistent with her assertion that her failure to accomplish a timely rollover
of
Amount 1 was caused by a miscommunication with a representative of Bank E
which led to Amount 1 to be deposited into a non-IRA account. Therefore,
Taxpayer A is granted a period of 60 days from the issuance of this ruling letter
to contribute Amount 1 into a rollover IRA. Provided all other requirements
of
section 408(d)(3) of the Code, except the 60-day requirement, are met with
respect to such contribution, the contribution
of Amount 1 will be considered a
rollover contribution within the meaning
of section 408(d)(3).
This ruling does not authorize the
rollover of amounts that are required to be
distributed by section
401 (a)(9) of the Code.
No opinion is expressed as to the tax treatment
of the transaction described
herein under the provisions
of any other section of either the Code or regulations
which may be applicable thereto. ·
This letter is directed only to the taxpayer who requested it. Section
611 O(k)(3)
of the Code provides that it may not be used or cited as precedent.

Page4
201428018
If you wish to inquire about this ruling, please contact XXXXXXXXXXX (ID
XXXXXXXX)
at (XXX) XXX-XXXX. Please address all correspondence to
SE:T:EP:RA:T1.
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
Sin;.-~rel~our_::_
~.~
Carlton A. Watkins, Manager
Employee Plans Technical Group 1