IRS written determination 201440030

us-irs-private-letter-rulings-201440030IRS written determination 201440030Guidance

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
U.I.L. 408.03-00
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Legend:
Decedent A
EstateS
IRA X
Amount D
Financial Institution B
Bank C
Executor E
Dear xxxxxxx:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
JUL 0 7 2014
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211440030
This letter is in response to your request dated July 31, 2013, as supplemented
by correspondence dated September 30, 2013, and May 9, 2014, submitted on
your
behalf by your authorized representative,
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").

2
211440030
The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested.
Executor E of EstateS represents that prior to his death Decedent A received a
distribution from IRA X totaling Amount
D. Executor E asserts that Decedent A's
failure to accomplish a rollover within the 60-day
period prescribed by section
408(d)(3)
of the Code was due to Decedent A's death.
Decedent A maintained IRA
X with Financial Institution B. While still alive, on
xxxxxxxx Decedent A was arrested and charged with several felony counts. On
xxxxxxxxxx, Decedent A withdrew Amount D from IRA
X to post his bail and paid
Amount D to a bail bondsman
on xxxxxxxxxxxx. Shortly thereafter, on xxxxxxxxx,
Decedent A committed suicide.
Executor E secured Amount D from the bail bondsman on June 19, 2012, and
Amount D is
currently held
in a blocked account at Bank C in the name of Estate
S.
Based upon the facts and representations, you request a ruling that the Internal
Revenue Service waive the 60-day rollover requirement contained
in section
408(d)(3)
of the Code with respect to the distribution of Amount 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 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)
(ii)
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 received the payment or
distribution; or
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 60t 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)).

3
2tll440030
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 received any other amount described in section 408(d)(3)(A)(i)
from an IRA which was not included
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)(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)
of the Code where
the failure to waive such requirement would be against equity and good
conscience, including casualty, disaster, or other events beyond the reasonable
control
of the individual subject to such requirement. Only distributions that occur
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. B. 359, provides that in determining whether to
grant a waiver
of the 60-day rollover requirement pursuant to section 408(d)(3)(1),
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 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
in this case do not
substantiate the intent
of Decedent A to rollover Amount D. In addition, at the
time
of his death, within the 60-day rollover period, Decedent A did not have
alternative assets to redeposit Amount D which was paid to a bail bondsman.
Further, at the time
of Decedent A's death, the criminal case against Decedent A
had not been
resolved so that Amount D would not necessarily have been
returned and redeposited into
IRA X within the 60-day rollover period.
Under the circumstances presented in this case, the Service hereby declines to
waive the 60-day rollover requirement with respect to the distribution
of Amount
D from IRA X.

4
201440030
No opinion is expressed as to the tax treatment of the transactions described
herein under the provisions of any other section
of either the Code or regulations,
which may be applicable thereto.
This ruling is directed
only to the taxpayer that requested
it. Section 6110(k)(3)
of the Code provides that it may not be used or cited by others as precedent.
If you have any questions concerning this ruling, please contact xxxxxxxxxxxxxx,
at xxxxxxxxxxxxxxxxxxxxxxxxxx. Any correspondence should be addressed to
SE:T:EP:RA:T3.
Enclosures:
Deleted copy
of letter ruling
Notice 437
Cc:
xxxxxxxxxxxxx
Sincerely
Y.Ours,
~dM~~
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3

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