IRS written determination 201440025

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
GOVERNMENT ENTITIES
DIVISION
Uniform Issue List: 402.00-00
Legend
Taxpayer
=
Spouse =
Plan =
Financial Institution =
Amount =
Dear
JULI 0 2014
211440025
This is in response to a letter dated June 14, 2013, in which you request a waiver of
the 60-day rollover requirement contained in section 402(c)(3)of the Code.
The following facts and representations have been submitted under penalty
of
perjury in support of the ruling requested.
Taxpayer received a distribution from
Plan of Amount. Taxpayer asserts that her
failure to accomplish a
rollover
of Amount within the 60-day period prescribed by section
402(c)(3)
of the Code was due to a severe medical condition that has caused a variety
of debilitating effects including memory loss. Taxpayer further represents that Amount
has not been used for any other purpose.
Taxpayer's husband, Spouse, was a participant
in Plan. Spouse died in 2007.
Taxpayer was named as beneficiary
of Plan upon Spouse's death. ·

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201440025
Spouse's account balance of Amount was distributed from Plan to Taxpayer in
December 2012. Taxpayer, who suffers from a severe medical condition that has
caused a variety
of debilitating effects including memory loss, placed the unopened
letter containing the check
in her drawer. It was discovered after the 60-day period by a
family member who deposited it into Taxpayer's checking account, where it remains
unused.
Based on the facts and representations, you request a ruling that the Internal
Revenue Service (Service) waive
the
60-day rollover requirement contained
in section
402(c)(3)
of the Code with respect to the distribution of Amount from Plan.
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.
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.
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 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 documentation submitted by Taxpayer, including a
written statement from her physician, is consistent with her assertion that her
failure to

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2Gl440025
accomplish a timely rollover was due to a severe medical condition that has caused a
variety
of debilitating effects including memory loss.
Therefore, pursuant to section 402(c)(3)(8) of the Code, the Service hereby waives
the
60-day rollover requirement with respect to the distribution
of Amount from Plan.
Taxpayer is granted a period starting with the distribution
of Amount from Plan and
ending 60-days from the issuance
of this ruling letter to contribute Amount into a
Rollover IRA. Provided all other requirements
of section 402(c)(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 402(c)(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
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 ruling is
being sent to your authorized representative.
If you have any questions, please contact
Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
cc:
Deleted Copy
of Ruling Letter
Notice
of Intention to Disclose
Sincerely
yours,
, Manager,
Technical Group 2