IRS written determination 201424029

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.

DEPARTMENT OF THE TREASURY
r01424029
INTERNAL REVENUE SERVICE

WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
MAR 2 1 2014
DIVISION
Uniform Issue List: 408.03-00
xxx
xxx
XXX
Legend:
Taxpayer
=xxx
Amount
= xxx
Financial Advisor
=xxx
Financial Institution
=xxx
IRA
=xxx
Account
= xxx
Dear XXX:
This
is in response to your request submitted on your behalf by your authorized
representative dated June 17, 2013, as supplemented by correspondence dated
December 14, 2013,
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.
On September 10, 2012, Taxpayer received a distribution of Amount from IRA.
Taxpayer asserts that her failure to accomplish a rollover
of Amount within the 60-day

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. period prescribed by section 408(d)(3) of the Code was due to her reliance on Financial
Advisor
of Financial Institution.
Upon the advice of Financial Advisor, Taxpayer took a distribution
of Amount from IRA
on September 10,2012. Taxpayer represents that she relied on Financial Advisor that
the distribution
of Amount would be invested in another tax qualified retirement plan.
Taxpayer contacted Financial Advisor
in mid-January 2013, after she noted that
Account was not designated as an IRA account. Financial Advisor has provided a
statement regarding the distribution of Amount and the subsequent investment
of
Amount.
Based on the above facts and representations, you request a ruling that
the Internal
Revenue Service ("Service") waive the 60-day rollover requirement contained in section
408(d)(3)
of the Code with respect to Amount.
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 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.

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201424029
, 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)(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.
Revenue Procedure 2003-16,2003-4
I.R.B. 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)(I)
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 is consistent with
her assertion that her failure to accomplish a timely rollover
of Amount was caused by
her reliance on Financial Advisor, resulting in the failure to deposit Amount into another
IRA within 60 days after being distributed from IRA.
Therefore, pursuant to section 408(d)(3)(A) of the Code, the Service hereby waives the
60-day rollover requirement with respect to the distribution
of Amount from IRA.
Taxpayer is granted a period
of 60 days from the issuance of this letter ruling to
contribute Amount 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 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 408(a)(6) 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 0(k)(3) of the
Code provides that it may not be used or cited as precedent.
A copy
of this letter ruling has been sent to your authorized representative pursuant to a
power
of attorney on file in this office.

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201424029

.. , . .
If you wish to inquire about this ruling. please contact XXX at (XXX) XXX-XXXX.
Please address all correspondence to SE:T:EP:RA:T3.
Sincerely yours,
~e5~~~
Laura B. Warshawsky. Manager
Employee Plans Technical Group 3
Enclosures:

Deleted copy
of ruling letter

Notice
of Intention to Disclose

cc:

XXX

XXX

XXX