IRS written determination 201434027

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
201484017·
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
MAY ! 7 2014
Uniform Issue List: 408.03-00
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Legend:
Taxpayer
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IRA X
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Amount
= ***
Financial Institution A
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Financial Institution B
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Dear***,
This is in response to your request dated March 25, 2011, submitted on your
behalf by your authorized representative, as supplemented by correspondence dated
September
4, 2012, July 16, 2013, July 29, 2013, April, 3, 2014, and April23, 2014, 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 represents that she received a distribution from IRA X totaling Amount.
Taxpayer asserts that her
failure to accomplish a rollover within the 60-day period
prescribed by section 408(d)(3) was due to Financial Institution B failing to carry out a
rollover transaction in a manner consistent with the intent
of the instructions she
provided. Taxpayer further represents that Amount has not been used for any other
purpose.
On June
5, 2009, Taxpayer's certificate of deposit matured within IRA X at
Financial Institution A. Taxpayer decided to rollover IRA X to Financial Institution
B, a
financial institution closer to her home. Accordingly, Taxpayer withdrew Amount
from
Financial Institution A. The same day, Amount was deposited into a certificate of deposit

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201434027
at Financial Institution B, yet the certificate of deposit was not within a rollover IRA.
Taxpayer asserts that this was contrary to her intent and instructions. Taxpayer
intended to
rollover IRA X into a rollover IRA at Financial Institution
B. Taxpayer was
made aware
of the failure to accomplish the rollover IRA when she approached Financial
Institution B regarding her 2010 required minimum distribution, her first required
minimum distribution
following the distribution
of Amount.
Based on 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.
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 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.
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

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201434017
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), 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 assertions that Financial Institution B failed to carry out a timely
rollover transaction consistent with the intent of the instructions she provided
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 X. Taxpayer is granted a period of 60 days from the issuance of this ruling. letter 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, 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
401 (a)(9) 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 has been sent to your authorized representative in
accordance with a power of attorney on file with this office.

201434027
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If you wish to inquire about this ruling, please contact*********** (ID
#
•• -) at (***) ***-****. Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Deleted copy
of ruling letter
Notice of Intention to Disclose
Cc: ***
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