IRS written determination 201431035

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.

\* TREASURY
INTERNAL
REVENUE POV
SERVICE

RNAL REVENUE SI

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

MAY 0 6 2014

201431035

U.I.L. 408.03-00
XXXXXXXXXXXXXXX
XXXXXXXXXXXXXXX
xxxxxxxxXXXXXXX

T. EP.R.A. T3

Legend:

Taxpayer A

= XXXXXXXXXXXXXX

IRA X
= XXXXXXXXXXXXXX

Account E

= XXXXXXXXXXXXXX

Credit Union F

= XXXXXXXXXXXXXX

Amount D
= XXXXXXXXXXXXX

Dear xxxxxxxxxx:

This letter is in response to your request dated August 16, 2013, as
supplemented by correspondence dated January 17, 2014,
submitted on your behalf 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 D. Taxpayer A asserts that her failure to accomplish a rollover within the
60-day period prescribed by section 408(d)(3) of the Code was due to her
medical condition during the 60-day rollover period which affected her ability to
handle her financial affairs.

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On January 10, 2012, Taxpayer A was hospitalized and the doctor told her that
she may have suffered some type of amnesia. Following her discharge from the
hospital on January 13, 2012, Taxpayer A represents that she suffered from
dizziness, headaches and confusion for approximately nine months after her
discharge from the hospital. As a result, Taxpayer A avoided interactions with
other persons and made some irrational decisions.

On January 16, 2012, Taxpayer A's IRA X Certificates of Deposit (CDs) matured
and she decided to move the funds to Account E, a non-IRA account with Credit
Union F. A representative of Credit Union F told Taxpayer A that moving the
funds from IRA X to Account E would be a taxable transaction, but Taxpayer A
demanded that Amount D be transferred to Account E. Documentation shows
that Taxpayer A did not comprehend what was happening and thought the
distribution was a required minimum distribution when it clearly was not.
Taxpayer A illogically noted on the withdrawal form from IRA X that the
distribution would be taxed on her 2011 income tax return. Taxpayer A also
incorrectly dated the withdrawal form as February 25, 2012, rather than the
correct date of February 2, 2012. Amount D is intact in Account E with Credit
Union F.

Taxpayer A represents that she first became aware of her failure to complete a
timely rollover when her 2012 income taxes were being prepared.

Based upon 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 D.

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 received 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

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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 included 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.

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)(I) 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 occur
after December 31, 2001, are eligible for the waiver under section 408(d)(3)(I) of
the Code.

Rev. Proc. 2003-16, 2003-4 I.R. B. 359, provides that in determining whether to
grant a waiver of the 60-day rollover requirement pursuant to section 408(d)(3)(I),
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 is
consistent with her assertion that her failure to accomplish a timely rollover was
due to her medical condition during the 60-day rollover period which affected her
ability to handle her financial affairs.

Therefore, pursuant to section 408(d)(3)(I) of the Code, the Service hereby
waives the 60-day rollover requirement with respect to the distribution of Amount
D. Taxpayer A is granted a period of 60 days from the issuance of this letter
ruling to contribute Amount D into a rollover IRA. Provided all other requirements

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of Code section 408(d)(3), except the 60-day requirement, are met with respect
to such contribution, the contribution of Amount D 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 transactions described
herein under the provisions of any other section of either the Code or regulations,
which may be applicable thereto.

This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of
the Code provides that it may not be used or cited by others as precedent.

A copy of this letter is being sent to your authorized representative pursuant to a
power of attorney on file in this office.

If you have any questions concerning this ruling, please contact xxxxxxxxxxxxx.
All correspondence should be addressed to SE:T:EP:RA:T3.

Sincerely yours,
fon Dos Why

Laura B. Warshawsky, Manager
Employee Plans Technical Group 3

Enclosures:
Deleted copy of letter ruling
Notice 437

CC:
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