IRS written determination 201436056

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
Legend:
Taxpayer A
=
IRAX =
Amount C =
Amount D =
Company F =
Dear
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
JUN 1 0 2014
Uniform Issue List: 408.03-00
201436056
This is in response to your request dated October 21, 2013, submitted by your
authorized representative,
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 from IRA X totaling
Amount
C. Taxpayer A asserts that her failure to accomplish a rollover of a portion of
amount C within the 60-day period prescribed by section 408(d)(3) of the Code was
caused by her anticipated need of funds to help prevent a potential loss
of her home
and the lack
of guidance from Company F.
Taxpayer A has IRA X with Company F. IRA X is an individual retirement
account which receives contributions from a
SIMPLE IRA Plan. Due to adverse
economic conditions, Taxpayer A was faced with the potential loss
of her home. While
pursuing a modification of her mortgage, Taxpayer A prepared for an anticipated cash
demand by withdrawing Amount
C from IRA
X.

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201436056
Taxpayer A represents that she intended to return any withdrawn funds that were
not needed to save her home from potential foreclosure to an IRA. After the mortgage
modification was completed, which was after the expiration
of the 60-day rollover
period, Taxpayer A redeposited a portion
of the amount withdrawn from IRA X (Amount
D) into IRA X. The representative of Company F erroneously placed Amount D back
into IRA X even though the 60 day rollover period had expired and Amount
Dis
considerably more than may be contributed to a SIMPLE IRA Plan for the 2011 plan
year.
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 rollover of Amount D.
Section 408(d)(1) of the Code provides that, except as otherwise provided in
section 408(d) of the Code, 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) of the Code
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)
of the Code).
Section 408(d)(3)(B)
of the Code provides that section 408(d)(3) of the Code
. does not apply to any amount described in section 408(d)(3)(A)(i) of the Code 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)
of the Code from an IRA which was not includible in gross income
because
of the application of section 408(d)(3) of the Code.
Section 408(d)(3)(D)
of the Code provides a similar 60-day rollover period for
partial rollovers.

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201436056
Section 408(d)(3)(E) of the Code provides that the rollover provisions of section
408(d)
of the Code do not apply to any amount required to be distributed under section
408(a)(6)
of the Code.
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)(D)
of the Code 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)
of the Code.
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 fails to
establish that the failure to accomplish a timely rollover was caused by mistakes made
by Company
F. Taxpayer A withdrew Amount C with the intent to use such amount to
accomplish a modification
of the mortgage, and made no attempt to rollover such
amount until after such modification was completed. Company F's failure to provide
guidance regarding what constitutes a timely rollover and Company F's error in
accepting the contribution
of Amount D after the expiration of the 60-day rollover period
is not the type
of financial institution error which allows us to waive the 60 day
requirement. Therefore pursuant to section 408(d)(3)(1)
of the Code, the Service will not
waive the 60-day rollover requirement with respect to the rollover
of Amount D to IRA X.
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 6110(k)(3)
of the Code provides that it may not be used or cited as precedent.
Pursuant to the power
of attorney on file with this office, a copy of this letter ruling
is being sent to your authorized representative.

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20.1436056
If you wish to inquire about this ruling, please contact (ID
) at ( ) -Please address all correspondence to SE:T:EP:RA:T3 .
Enclosures:
Deleted copy
of ruling letter
Notice of Intention to Disclose
cc:
Sincerely yours,
--/ /7 #
~.__ ,;/~ tvz:<-~.__.-C'-c~
Laura B. Warshawsky, Manager,
Employee Plans Technical Group 3