IRS written determination 201432030

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
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
TAX EXEMPT AND
HAY 13 2014
GOVERNMENT ENTITIES
DIVISION
Uniform Issue List: 408.03-00
Legend:
Taxpayer A
=
IRAB
=
Roth IRA C
=
Financial Institution D
=
IRAE
=
Roth IRA F =
Financial Institution G =
Amount 1 =
Amount 2 =
Dear
201432030
This is in response to your request for a ruling dated August 20, 2013, as
supplemented by correspondence dated October 1, 2013, and January 20,
and February 23, 2014, from 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").

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201432030
The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested:
Taxpayer A represents that she received distributions from IRA
Band Roth IRA
C totaling Amount 1 and Amount
2, respectively. Taxpayer A asserts that her
failure to accomplish a rollover
of Amount 1 and Amount 2 within the 60-day
period prescribed by Code section 408(d)(3) was due a failure by her financial
advisor to explain the 60-day rollover rule. Taxpayer A further represents that
Amount 1 and Amount 2 have not been used for any purpose.
On September 10, 2012, Taxpayer A completed the appropriate withdrawal
instructions forms requesting distributions from IRA
Band Roth IRA C. IRA B
was a traditional IRA and Roth IRA C was a Roth IRA under sections 408(a) and
408A
of the Code, respectively. Both IRAs were maintained with Financial
Institution
D. After correcting some clerical errors on the withdrawal forms,
Financial
Institution
D, on September 22, 2012, distributed Amount 1 and Amount
2 from IRA Band Roth IRA C, respectively. The distributions were deposited into
like accounts (IRA E and Roth IRA
F) with Financial Institution G on January 9,
and 14, respectively, after the 60-day period expired.
Taxpayer A states that Financial Institution D was her financial advisor. Based
on her understanding
of her relationship with Financial Institution D, she relied on
them to provide guidance regarding the rules associated with her IRA
investments, specifically the 60-day rollover period. However, Taxpayer A
provided no documented evidence that Financial
Institution D was her financial
advisor.
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 distributions of Amount 1 and
Amount
2.
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-

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201432030
.Page 3'
(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 60
1
h
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)).
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.
I
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 Service has the authority to waive the 60-day rollover requirement for a
distribution from a qualified retirement plan where the individual failed to
complete a rollover to another qualified plan
or IRA within the 60-day rollover

• Pag~ 4
201432030
period but was prevented from doing so because of one of the factors
enumerated above
in Revenue Procedure 2003-16. In this instance, however,
the Service finds that the documentation and materials provided by Taxpayer A
do not demonstrate how any
of these factors resulted in her failure to accomplish
a timely rollover
of Amount 1 and Amount 2. Taxpayer A represented that her
inability to complete a rollover of Amount 1 and Amount 2 was caused by
Financial Institution D's failure to explain the
60-day rollover rule with respect to
the distributions
of these amounts. However, the Code imposes no such
obligation
on IRA custodians. Absent actions on the part of a financial institution
undertaking such an obligation we do not recognize this failure as financial
institution error.
Therefore, the Service declines to waive the 60-day rollover requirement with
respect to the distributions
of Amount 1 and Amount 2 from IRA Band Roth IRA
C, respectively. The deposits of Amount 1 into IRA E on January 9, 2014, and
Amount 2 into Roth
IRA F on January
14, 2014, are not valid rollovers within the
meaning
of Section 408(d)(3) 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 6110(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. If you wish to inquire about
this ruling, please contact
(I. D.# ), , at ( )
Sincerely yours,
CA&-a.~
Manager
Employee Plans Technical Group 1
Enclosures:
Deleted Copy
of this Letter
Notice
of Intention to Disclose, Notice 437
cc: