IRS written determination 201440029

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
JUl {J3ZOI4
Uniform Issue List: 408.03-00
XXX XX
XXX XX
XXX XX
Legend:
Taxpayer
IRA X
Amount
Dear XXXXX:
=
XX XXX
=
XX XXX
XX XXX
XX XXX
=
XXX XX
281440029
This is in response to your letter dated September 20, 2013, 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 represents that
on April12, 2013, he received a distribution
totaling Amount from IRA X. On April15, 2013, Taxpayer deposited Amount into
his checking account with the intent to invest the funds
in a new IRA with
different investments. Taxpayer asserts that his failure to accomplish a rollover
of
Amount within the 60-day period prescribed by section 408(d)(3) of the Code was
due to his medical condition. Taxpayer further represents that Amount has not
been used for any other purpose.
Taxpayer represents that
on April12, 2013, he requested a distribution of
Amount from IRA X. On April15, 2013, Amount was deposited into his checking
account. During the
60-day period following the distribution, Taxpayer was

2&1440089.
suffering from physical and emotional medical issues related to a critical illness.
• He was also hospitalized and
on prescription drugs during part of that time. It
was not until June 18, 2013, after Taxpayer's medical condition improved, that
Taxpayer realized that he missed the relevant 60-day rollover period. Taxpayer
has provided documentation showing that he was treated for his medical
condition during the
60-day rollover period. Taxpayer asserts that, as a result
of
his medical condition, he was unable to deposit Amount into an IRA.
Based on the facts and representation, you request a ruling that the
Internal Revenue Service ("Service") waive the 60-day rollover requirement with
respect to the distribution
of Amount.
Section 402(h)(3)
of the Code provides that any amount paid or distributed
out
of an individual retirement plan pursuant to a simplified employee pension
shall be included
in gross income by the payee or distribute, as the case may be,
in accordance with the provisions of section 408(d).
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.
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) 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

201440019
receipt such individual 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) (related to required minimum distributions under section
401 (a)(9) and incidental death benefit requirements
of section 401 (a)).
Section 408(d)(3)(1)
of the Code provides that the Secretary may waive
the
60-day requirement under sections 408(d)(3)(A) and 408(d)(3)(D) 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.
Revenue
Procedure 2003-16, 2003-4 I.R.S. 359 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 Hedge Fund; (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 documentation from his treating physician, is consistent with his
assertion that the failure to accomplish a timely rollover was caused by his
medical condition.
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
from IRA
X. Taxpayer is granted a period of 60 days from the issuance of this
letter ruling to contribute Amount into a rollover IRA. Provided all other
requirements
of section 408(d)(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 408(d)(3).
This ruling does not authorize the rollover
of amounts that are required to
be distributed by section
401 (a)(9) of the Code.

201440029'
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 XXXXX XXXX at
XXX-XXX-XXXX. Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
Sincerely yours,
---i c /]}
'/ ~ 1 / u-
6
(f.-.'1r-.J~ ~:-)
Jason E. Levine, Manager,
Employee
Plans Technical Group 2