IRS written determination 201436057

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
JUN 1 3 2014
Uniform Issue List: 402.00-00
Legend:
Taxpayer A
=
Plan 8
=
Account C
=
Account D
=
Financial Institution E
=
Individual F
=
IRAG
=
Amount 1
=
Amount 2
=
Amount 3
=
Amount4
=
Amount 5
=
Dear
20143605?
This is in response to a request for a private letter ruling dated April 21, 2014,
as supplemented by correspondences dated May 15, and 21, 2014,
in which you
request a waiver
of the 60-day rollover requirement contained in section
402(c)(3)
of the Internal Revenue Code ("Code").

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201436057
The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested:
Taxpayer A represents that he received a distribution
of Amount 1 from Plan B.
Taxpayer A asserts 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 responsibility
to care for his mother-in-law, her deteriorating medical condition and subsequent
death which impaired his ability to manage his financial affairs.
Taxpayer A participated
in Plan B, a qualified plan under section 401(a) of the
Code.
On August 14, 2013, Taxpayer A received a distribution
of Amount 1 from
Plan
B. This equaled Amount 2 minus Federal taxes withheld of Amount 3. On
August 20, 2013, Taxpayer A deposited Amount 1 into Account
C, his joint
checking account with his spouse.
On August 28, 2013, Taxpayer A transferred
Amount 4 in Account C to Account
0, their savings account.
Taxpayer A represents he intended to
rollover a portion
of the distribution
(Amount
5) into an individual retirement account (IRA) with Financial Institution E.
Taxpayer A is the primary caretaker for Individual F, his mother-in-law. Over the
last several years, the health
of Individual F has declined and it worsened in the
period after the distribution.
Specifically, during the 60-day rollover period,
Individual F became increasingly ill with a serious medical condition. Taxpayer A
spent much
of his time caring for Individual F who required numerous medical
visits due to her medical condition. On October
7, 2013, within the 60-day
period, Individual F passed away. Taxpayer A then turned his attention to funeral
and estate planning. As a result, Taxpayer A failed to roll over Amount 5 into
another IRA within the 60-day rollover deadline. On March 17, 2014, Amount 5
was deposited into IRA G with Financial Institution
E. Taxpayer A further
represents that Amount 5 has not been used for any other purpose.
Based on the facts and representations, you request a ruling that the
Internal
Revenue Service waive the 60 day rollover requirement
in section 402(c)(3) of
the Code with respect to the distribution of Amount 5.
Section 402(c) 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) 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.

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201436057
Section 402(c)(4) of the Code provides that an eligible rollover distribution shall
not include any distribution to the extent such distribution is required under
section
401 (a)(9).
Section 402(c)(3)(B)
of the Code provides, in relevant part, that the Secretary
may waive the 60-day requirement under sections 402(c) 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) provides the rules for governing "direct transfers
of eligible
rollover distributions".
Section 1.401(a)(31)-1
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.
Revenue Procedure 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 section 402(c)(3)
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 the documentation submitted by Taxpayer A is
consistent with his assertion that his failure to accomplish a timely rollover
of
Amount 5 was due to his responsibility to care for Individual F, her worsening
medical condition and subsequent death, which impaired Taxpayer A's ability to
manage his financial affairs during the 60-day rollover period.
Therefore, pursuant to section 402(c)(3)(B), the Service hereby waives the
60-
day rollover requirement with respect to the distribution
of Amount 5 from Plan B.
Provided all other requirements of section 402(c) of the Code, except the 60-day
requirement, were met with respect to such contribution, the contribution
of
Amount 5 to IRA G on March 17, 2014, will be considered a rollover contribution
within the meaning
of section 402(c) 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.

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201436057
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.
If you wish to inquire about this ruling, please contact
(I.D. # .), SE:T:EP:RA:T1, at
Enclosures:
Deleted Copy
of this Letter
Notice
of Intention to Disclose, Notice 437
Sincerely yours,
Carlton
A. Watkins, Manager
Employee Plans Technical Group 1