IRS written determination 201428014

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
Uniform Issue List: 402.00-00
APR 1 7 2014
xxxxx
XXX XX
XXX XX
Legend:
Taxpayer
Financial Institution
Amount
Plan
Dear XXXXX:
= xxxxx
= xxxxx
= xxxxx
= xxxxx
201428014
This is in response to your request dated June 10, 2013, as supplemented by
correspondence dated
July 23, 2013, August
7, 2013, September 25, 2013 and January
7, 2014, submitted on your behalf by your authorized representative in which you
request a waiver of the
60-day rollover requirement contained in section 402(c)(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 represents that she received a distribution from Plan totaling Amount.
Taxpayer asserts that her failure to accomplish a rollover within the 60-day period
prescribed by section 402(c)(3) of the Code was due to Taxpayer's medical condition
which impaired her
ability to accomplish a timely rollover during the 60-day period.
Taxpayer took a distribution of Amount from
Plan on July
6, 2011. Taxpayer
intended to rollover Amount into an IRA with Financial Institution. However, at the time
of the distribution and during the 60-day rollover period, Taxpayer was suffering from
medical conditions that impaired her ability to accomplish the rollover within the 60-day
timeframe. Taxpayer asserts that as a result of her medical condition, she
misunderstood that she deposited Amount into a non-qualified account instead of an

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201428014
IRA. Clinical documentation supports Taxpayer's assertion that at the time of the
relevant 60-day period she was suffering from the above-referenced medical condition.
Based on the facts and representations, you request a ruling that the
Internal
Revenue Service (the "Service") waive the 60 day rollover requirement contained in
section 402(c)(3) of the Code with respect to the distribution of Amount.
Section 402(c) of the Code provides that if any portion of the balance to the credit
of an employee
in a qualified trust is paid to the employee in an eligible rollover
distribution, and the distributee transfers any portion of the property received
in such
distribution to an eligible retirement plan, and
in the case of a distribution of property
other than money, the amount so transferred consists of the property distributed, then
such distribution (to the extent transferred)
shall not be includible
in gross income for
the taxable year
in which paid. Section 402(c)(3)(A) of the Code states that such
rollover must be accomplished within 60 days following the day on which the distributee
received the property. An individual retirement account
(IRA) constitutes one form
of
eligible retirement plan.
Section 402(c)(4) of the Code provides that an eligible rollover distribution shall
not include any distribution to the extent such distribution is required under section
401 (a)(9) of the Code.
Section 402(c)(3)(B) of the Code provides that the Secretary may waive the 60-
day requirement under section 402(c)(3)(A) 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 402(c)(3)(8) of the Code.
Rev. Proc. 2003-16, 2003-41.R.B. 359, (January 27, 2003), provides that in
determining whether to grant a waiver of the 60-day rollover requirement pursuant to
section 402(c)(3) 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 are
consistent with her assertion that her
failure to accomplish a timely rollover was caused
by her medical condition, which impaired her ability to accomplish a timely rollover.
Therefore, pursuant to section 402(c)(3)(8) of the Code, the Service hereby
waives the 60-day rollover requirement with respect to the distribution of Amount from
Plan. Taxpayer is granted a period of 60 days from the issuance of this ruling letter to
contribute Amount into an IRA or other eligible retirement plan. Provided all other

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201428014
requirements of section 402(c)(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 402(c)(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.
No opinion is expressed as to the tax treatment of the transaction described in
this
ruling under the provisions of any other section of either the Code
or regulations
which may be applicable.
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.
Pursuant to a power of attorney on file with this
office, a copy of this
ruling is
being sent to your authorized representative(s).
If you wish to inquire about this ruling, please contact XXXXX at XXXXX. Please
address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Ruling Letter
Notice of Intention to Disclose
cc:
xxxxx
XXX XX
XXX XX
Sincerely you~ A • • ~
~w{jJ':_InlM Cclij f'J
Jason E. Lev1ne, Manager
Employee Plans Technical Group 2