IRS written determination 201428015

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
APR 1 7 2014
Uniform Issue List: 408.03-00
XX XXX
XXX XX
XXX XX
Legend:
Taxpayer
Spouse
IRA X
IRAY
IRAZ
Amount 1
Amount 2
Amount 3
Dear XXXXX:
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xxxxx
=
XXX XX
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XX XXX
=
xxxxx
=
XX XXX
=
XXX XX
=
XX XXX
=
XXX XX
201428015
This is in response to your request dated September 24, 2012, as supplemented
by correspondence dated January 2, 2013, February 5, 2013, November 22, 2013 and
December 5, 2013, 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").
The following facts and representations have been submitted under penalty
of
perjury in support of the ruling requested:

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201428015
Taxpayer was the sole beneficiary of IRA X, IRA Y, and IRA Z, which was
maintained by Spouse, who passed away on January 22, 2011. Taxpayer represents
that on March 28,
2011, she received a distribution of Amount 1 from IRA
X. On March
31, 2011, Taxpayer received two distributions, one from IRA Y for Amount
2, and
another from IRA Z for Amount
3. Taxpayer 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
her poor
physical and mental condition that were used following Spouse's death.
Taxpayer represents that Amount
1, Amount 2 and Amount 3 have not been used for
any other purpose.
On
April4, 2011, Taxpayer deposited Amount 1 into a non-qualified checking
account, Account
L. Additionally, on April 5, 2011, Taxpayer deposited Amount 2 and
Amount 3 into a checking account. As a result of Taxpayer's mental and physical
impairments, she failed to place Amount
1, Amount 2 and Amount 3 in an IRA.
Taxpayer realized her inaction in March of 2012, when she provided her 1 099-R forms
to her CPA.
Taxpayer has submitted documentation supporting her assertion that during the
relevant 60-day period, Taxpayer suffered from mental and physical illness, including
Alzheimer dementia and other ailments that hospitalized her and diminished her ability
to make financial decisions.
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 distributions of Amount
1, Amount 2
and Amount
3.
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
roll overs.
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,

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201428015
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) 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 December31, 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.
Taxpayer has submitted documentation supporting her assertion that during the
relevant 60-day period, she
suffered from mental and physical
illness, including
Alzheimer dementia and other ailments that hospitalized her and diminished her
ability
to make financial decisions.
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
1,
Amount 2 and Amount 3 from IRA X, IRA Y and IRA Z, respectively. Taxpayer is
granted a period of 60 days from the issuance of this ruling letter to contribute Amount
1, Amount 2 and Amount 3 into an IRA or other eligible retirement plan. 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 of Amount
1, Amount 2, and

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201428018
Amount 3 will be considered rollover contributions 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
401 (a)(9) of the Code.
No opinion is expressed as to the tax treatment of the transaction described in
this ruling under the provisions of any other section of either the Code or regulations
which may be applicable.
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 is
being sent to your authorized representative.
If you wish to inquire about this ruling, please contact XXXXX, at (XXX) XXXXX.
Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Ruling Letter
Notice of Intention to Disclose
cc:
xxxxx
XXX XX
XXX XX
Sincerely
y~,
~. ~ L~rA>~·
Jason E. L · e, Manager, Y fv)
Employee Plans Technical Group 2