IRS written determination 201428016

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 16 2014
Uniform Issue List: 408.03~00
XXX XX
XXX XX
xxxxx
Legend:
Taxpayer
IRA
Amount
Financial Institution
Dear
XXXXX:
= xxxxx
= xxxxx
XXX XX
= xxxxx
= xxxxx
201428016
This is in response to your request dated June 20, 2013, submitted on behalf of
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
pe~ury in support of the ruling requested:
Taxpayer represents that he received a distribution from IRA totaling Amount.
Taxpayer asserts that his
failure to accomplish a rollover within the 60-day period
prescribed by section 408(d)(3) of the Code
was due to a mistake made by
Financial
Institution, which failed to carry out his instructions to deposit Amount into an IRA.
Taxpayer further represents that Amount has not been used for any other purpose.
Taxpayer represents that
on January 19, 2011, he received a distribution of
Amount. Taxpayer also represents that he took the distribution based upon the advice
of an employee
of Financial Institution, who advised him that he would receive a higher
interest rate if
he rolled over Amount into a different IRA. Pursuant to this advice, and
the representation
of the employee at Financial Institution that the rollover would not

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201428016
affect the IRA status of the funds, Taxpayer rolled Amount into another account with
Financial Institution, which he believed to be
an IRA. It was not until Taxpayer received
a notice from the
Internal Revenue Service on May 6, 2013, that he realized that
Amount had been placed into a non-qualified account, instead of an IRA. Financial
Institution acknowledges that its employee may have not understood the transaction in
question, and that Taxpayer never intended
to move Amount into a non-qualified
account.
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 408(d)(3)
of the Code with respect to the distribution of Amount.
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
60
1
h
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)(8) 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)(0)
of the Code provides a similar 60-day rollover period for
partial rollovers.

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201428016
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, 2003-41.R.B. 359 (January 27, 2003) provides that in
determining whether to grant a waiver of the
60-day rollover requirement pursuant to
section 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, including
the written acknowledgment by Financial Institution that its employee
may not have
understood the transaction
in question and that Taxpayer did not intend to move
Amount into a non-qualified account, is consistent with his assertion that his failure to
accomplish a timely rollover was caused by Financial Institution's employee's
misunderstanding of the transaction
in question.
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 from
IRA. 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
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.
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 6110(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 letter is
being sent to your authorized representative.

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201428016
If you wish to inquire about this ruling, please contact XXXXX XXXX at (XXX)
XXX-XXXX.
Ple.ase address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Deleted copy of ruling letter
Notice of
Intention to Disclose
cc: xxxxx
XXX XX
xxxxx
Sincerely yours,
de~~~r-
Jason E. Levine, Manager,
Employee Plans Technical Group
2