IRS written determination 201436055

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
JUN 1 3 2014
GOVERNMENT ENTITIES
DIVISION
Uniform Issue List: 402.03-00
Legend:
Decedent A
=
Taxpayer 8
=
Plane
=
Plan D
=
Company E =
Financial Institution F =
State G =
Amount 1 =
Dear
201436055
This is in response to your request dated October 2, 2013 and
supplemented by correspondence dated AprilS, May
5, and May 8, 2014, from
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") with respect to Decedent
A. You are the personal representative of
the estate of Decedent A. You also are the surviving spouse of Decedent A.

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201436055
The following facts and representations have been submitted under
penalty
of perjury in support of the ruling requested.
You represent that Decedent A requested a direct rollover
of Amount 1
from Plan C to Plan D maintained with Company
E. You assert that his failure to
accomplish a rollover within the 60-day period prescribed by section 402(c)(3) of
the Code was due to his death prior to the direct rollover being consummated.
You further represent that Amount 1 has not been used for any other purpose.
Decedent A participated
in Plan C and Plan D with Company E. Decedent
A retired in 2004 and began receiving a monthly benefit from Plan C. In late
2012, Decedent A received notice from Company C that he had the option
of
requesting a lump-sum distribution from Plan C. In early 2013, Decedent A
completed paperwork requesting a rollover
of his Plan C distribution to Plan D.
After Company E acknowledged receipt of the rollover request form but prior to
the rollover, Decedent A died at age 64.
Decedent A in his Last Will and Testament named Taxpayer
Bas the
personal representative and primary beneficiary
of his estate. The Will grants
Decedent
A's personal representative all powers in the management of his estate
and to do
all acts proper and necessary to carry out the purpose
of the Will.
Taxpayer B was appointed personal representative under State G law.
Approximately one month after Decedent A's death, Taxpayer B received
a check from Plan
C made payable to Plan D FBO Decedent. Taxpayer B
mailed the check with the rollover request form that Decedent A had completed
to Company E for rollover into Plan D. Upon receipt of the check and rollover
form, a representative
of Plan D notified Taxpayer A that the rollover could not be
completed since, due to the death
of Decedent A, and the designation of
Taxpayer Bas beneficiary, the Plan D benefit was now in Taxpayer B's name.
Taxpayer B was advised to open an estate account
or put the money in an IRA.
On two subsequent occasions with two separate financial institutions, Taxpayer
B attempted to open an IRA in Decedent A's name but both financial institutions
refused to open an IRA
in the name of Decedent A. The check for Amount 1 that
had been reissued and made out to Financial Institution F FBO Decedent A was
not deposited and remains uncashed.
Based on the above facts and representations, you request that the
Internal Revenue Service ("Service") waive the 60-day rollover requirement
contained
in section 402(c)(3)(B) of the Code with respect to the distribution of
Amount 1.

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201436055
Section 402(c) of the Code provides rules governing rollovers of amounts
from exempt trusts to eligible retirement plans, including IRAs.
Section 402(c)(1)
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)(3)(B)
of the Code provides, in relevant part, that the
Secretary may waive the 60-day requirement under section 402(c)
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)(B)
of the Code.
Section 401(a)(31)
of the Code provides the rules for governing "direct
transfers
of eligible rollover distributions".
Section 1.401(a)(31)
of the Income Tax Regulations, Question and
Answer-15, provides,
in relevant part, that an eligible rollover distribution that is
paid to an eligible retirement plan
in a direct rollover is a distribution and rollover,
and not a transfer
of assets and liabilities.
Rev. Proc. 2003-16, 2003-4 I.R.B. 359 (January 27, 2003) provides that
in
determining whether to grant a waiver of the 60-day rollover requirement
pursuant to sections 408(d)(3)(1) and 402(c)(3)(B)
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.

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201436055
Under Rev. Proc. 2003-16, the death of a person who receives an eligible
rollover distribution is one
of the facts and circumstances that the Service will
consider when deciding whether to grant a waiver
of the 60-day rollover
requirement. The information presented and the documentation submitted by
Taxpayer B is consistent with her assertion that Decedent A's
failure to
accomplish a timely
rollover
of Amount 1 was due to his death.
Assuming that Taxpayer
B, as personal representative of Decedent A's
estate, is authorized under the laws
of State G to complete a rollover of the
distribution
of Amount 1, pursuant to section 402(c)(3) of the Code, the Service
hereby waives the 60-day rollover requirement with respect to the distribution
of
Amount 1 from Plan C. Taxpayer B is granted a period of 60 days from the
issuance
of this letter ruling to contribute an amount not more than Amount 1 into
a
rollover IRA or IRA annuity in the name of Decedent A. Provided all other
requirements
of section 402(c)(3), except the 60-day requirement, are met with
respect to such contribution, the contribution will be considered a rollover
contribution within the meaning
of section 402(c)(3).
However, it
is noted that, to the extent that you, as executor and sole
beneficiary
of Decedent A's estate, name a beneficiary of the IRA, section
1.401 (a)(9)-4, Q&A-4, of the Regulations provides that a designated beneficiary
must be a beneficiary as
of the date of death. The Service will not treat any
beneficiary named by you, as personal representative
of Decedent A's estate, as
a designated beneficiary under section
401 (a)(9). Thus, for purposes of section
401 (a)(9), the rollover IRA will have no designated beneficiary.
This ruling does not authorize the rollover
of amounts that are required to
be distributed by section 408(a)(6)
of the Code.
In addition, the scope of Taxpayer B's authority as personal representative
of Decedent A's estate is a matter governed by state law. This ruling assumes
Taxpayer B's actions as personal representative
of Decedent A's estate relevant
to the ruling request contained herein are
in accordance with the laws of State G.
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 letter
is being sent to your authorized representative.

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201436055
If you wish to inquire about this ruling, please contact
(ID ) at ( ) . Please address all correspondence to
SE:T:EP:RA:T1.
Enclosures:
Deleted
copy
of ruling letter
Notice
of Intention to Disclose
cc:
Sincerely yours, • •
~
~,we
Carlton A. Watkins, Manager
Employee Plans Technical Group
1