IRS written determination 201526026

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 0 1 2015
Uniform Issue List: 408.03-00
Legend:
Taxpayer A
=
IRAB
=
Banke
=
Account D
=
Amount 1
=
Dear
201526026
This is in response to your request for a private letter ruling dated October
29, 2014, as supplemented by correspondence dated January 26, and February
26, 2015,
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 equal to Am9unt 1
from IRA
B, which was maintained by Financial Institution C. Taxpayer A a.sserts
that her
failure to accomplish a rollover within the 60-day period prescribed by
section 408(d)(3) was due to a miscommunication with a representative
of

··Page 2
20112602.6
Bank C which led to Amount 1 being placed in a non-IRA account. Taxpayer A
further represents and provided bank statements showing that
Amount 1 has not
been used for any other purpose.
Taxpayer A maintained IRA B with Financial Institution
C. On October 23,
2012, a certificate
of deposit in IRA B became due. Seeking a higher rate of
return, on October 25, 2012, Taxpayer A decided to transfer this investment to
what she understood was a regular money market fund within IRA B. For
unexplained reasons, Financial Institution C disregarded Taxpayer A instructions
and transferred
Amount 1 to Account D, a non-IRA Account. At the time of this
transaction Taxpayer A was undergoing medical treatment for a serious illness.
Taxpayer A
was unaware Amount 1 had been transferred to Account D until
September, 2014, when she was notified
by the Internal Revenue Service.
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.
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) 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 60t
11
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)(8)
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

'Page 3
201526026
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)(0)
of the Code provides a similar 60-day rollover period
for partial rollovers.
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)
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), 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 C
which led to Amount 1 to be deposited into a non-IRA account.
Therefore, pursuant to section 408(d)(3)(1)
of the Code, the Service
hereby waives the 60-day rollover requirement with respect to the distribution
of
Amount 1 from IRA B. Taxpayer A is granted a period of 60 days from the
issuance of this letter ruling to transfer an amount not to exceed 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 will be considered a rollover contribution within the meaning
of
section 408(d)(3) of the Code.
This ruling does not authorize the
rollover
of amounts that are required to
be distributed by section 401 (a)(9) of the Code.

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201526026
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.
If you wish to inquire about this ruling, please contact
(ID
# ) at ( ) Please address all correspondence to
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
Sincerely yours,
~~~A. L-<Jc,ff~
Manager
Employee Plans Technical Group 1