IRS written determination 201439005

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.

\* TREASURY

INTERNAL
EDITE REVENI ROD

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

JUL 0 2 2014

201439005

Uniform Issue List: 408.03-00

T. EP.R.A.T3

Legend:

Taxpayer A
\=

Amount B
\=

Financial Institution C
\=

Financial Institution D
\=

IRA X
\=

Account Y

=

Dear

This is in response to your request submitted on February 10, 2014, as supplemented
by correspondence dated May 30, 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 A represents that she received a distribution from IRA X totaling Amount B.
Taxpayer A asserts that her failure to accomplish a rollover within the 60-day period
prescribed by section 408(d)(3) of the Code was due to an error by Financial Institution
D.

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Taxpayer A invested IRA X in a certificate of deposit (CD) at Financial Institution C,
which matured on August 18, 2011. Taxpayer A met with a branch manager at Financial
Institution D and discussed her intention to rollover the distribution of Amount B from
IRA X into another individual retirement account (IRA) at Financial Institution D. At the
maturation of the certificate of deposit, Financial Institution C distributed Amount B from
IRA X to Taxpayer A. Taxpayer A instructed Financial Institution D to deposit Amount B
into another IRA CD at Financial Institution D. However, Financial Institution D instead
erroneously deposited Amount B into Account Y, a non-IRA CD.

Taxpayer A further represents that Financial Institution D sent no written
communications to her concerning Account Y and that she was unaware that Amount B
had not been deposited into an IRA CD. Taxpayer A asserts that she became aware
that the distribution of Amount B from IRA X was not successfully rolled over into
another tax-qualified account when she received a notice from the Internal Revenue
Service dated April 23, 2013. Taxpayer A asserts that Amount B has not been used for
any purpose.

Based on the above facts and representations, you request a ruling that the Internal
Revenue Service ("Service") waive the 60-day rollover requirement contained in section
408(d)(3) of the Code with respect to the distribution of Amount B from IRA X.

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 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)).

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

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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)(I) 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
subject to such requirement. Only distributions that occurred after December 31, 2001,
are eligible for the waiver under section 408(d)(3)(I) of the Code.

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 408(d)(3)(I) 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 of Amount B was due
to an error by Financial Institution D, which resulted in the deposit of Amount B into
Account Y, a non-IRA CD.

Therefore, pursuant to section 408(d)(3)(I) of the Code, the Service hereby waives the
60-day rollover requirement with respect to the distribution of Amount B from IRA X.
Taxpayer A is granted a period of 60 days from the issuance of this letter ruling to
contribute Amount B 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 the
contribution of Amount B, such contribution will be considered a rollover contribution
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.

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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
address all correspondence to SE:T:EP:RA:T3.

at

)
\-
Please

Sincerely yours,
Lau B wankers
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3

Enclosures:
Deleted copy of ruling letter
Notice of Intention to Disclose