IRS written determination 201437027

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
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Legend:
Taxpayer A
IRA X
IRAY
Amount A
Financial Institution F
Dear***:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
JUN 1 8 2014
Uniform Issue List: 408.03-00
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201437027
This is in response to your request dated December 29, 2012, as supplemented by
correspondence dated November
1, 2013, November 4, 2013, and March 12, 2014, in
which you requested a waiver
of the 60-day rollover requirement contained in section
408(d)(3)
of the Internal Revenue Code (the "Code").
Taxpayer A represents that she received a distribution from IRA X totaling Amount
A.
Taxpayer A asserts that her failure to accomplish a rollover of Amount A within the 60-
day period prescribed by section 408(d)(3)
of the Code was due to financial institution
error. Taxpayer A further represents that Amount A has not been used for any other
purpose.

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201437027:
The following facts and representations have been submitted under penalties of perjury
in support
of the ruling requested:
On August 4, 2011, Taxpayer A visited Financial Institution F to inquire about rolling
over the balance
of IRA X into another IRA Taxpayer A asked how long she would
have to accomplish the transfer in order to avoid having to include the amount in taxable
income. The Taxpayer represents that the employee
of Financial Institution F informed
her that she would have up to two years to transfer the distribution into another IRA.
Based on this advice, Taxpayer A took a distribution
of Amount A from IRA X and left
Amount A on deposit
in a non-IRA account at Financial Institution F with the intention of
rolling over Amount A later. Taxpayer A represents that she had no intent to use
Amount A for any purpose other than to rollover to another IRA.
Taxpayer A did not discuss
this transaction with any other person until January,
2012
when she informed her spouse. Taxpayer A's spouse informed her that the two-year
period to accomplish a rollover cited by the Financial Institution F representative was
likely incorrect.
Thereafter, Taxpayer A attempted to deposit Amount A into another IRA
at Financial
Institution
F. Because the 60-day period had expired, Financial Institution F would not
permit a
rollover
of Amount A However, Financial Institution F permitted Taxpayer A to
contribute $12,000 into a Roth IRA, the maximum contribution allowable for the 2011
and 2012 calendar years.
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 distribution of Amount A
Section 408(d)(1)
of the Code provides that, except as otherwise provided in section
408(d)
of the Code, 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

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201437027
(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
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)
of the Code).
Section 408(d)(3)(8)
of the Code provides that section 408(d)(3) of the Code does not
apply to any amount described
in section 408(d)(3)(A)(i) of the Code 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) of
the Code from an IRA which was not includible in gross income because of the
application
of section 408(d)(3) of the Code.
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)
of the Code do not apply to any amount required to be distributed under section
408(a)(6)
of the Code.
Section 408(d)(3)(1) of the Code provides that the Secretary may waive the 60-day
requirement under sections 408(d)(3)(A) of the Code 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)
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 documentation submitted by Taxpayer A is consistent
with her assertion that her failure to accomplish a timely rollover was caused by the
incorrect advice she received from Financial Institution F regarding the permissible
period
of time to accomplish the rollover of Amount A into another IRA.
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 A from IRA X.
Taxpayer A is granted a period of 60 days from the issuance of this ruling letter to

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201437027
contribute Amount A into IRA Y, a traditional IRA set up for the purpose of receiving the
rollover from IRA
X. Provided all other requirements of section 408(d)(3) of the Code,
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
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 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*** (ID# ***)at(***)***. Please
address all correspondence to SE:T:EP:RA:T3.
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
Sincerely yours,
~L~~
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3