IRS written determination 201429033

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
REVENUE SEB
SERVICE

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

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

201429033

APR 2 3 2014

Uniform Issue List: 408.03-00

T:EP.RA: T2

XXXXX

XXXXX
XXXXX

XXXXX

Legend:

Taxpayer

=

XXXXX

IRA

=

XXXXX

Amount

=

XXXXX

Dear XXXXX:

This is in response to your letter dated August 20, 2013, as supplemented
by correspondence dated November 6, 2013, March 4, 2014 and March 5, 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 represents that on May 10, 2012, she received a distribution of
Amount from IRA. 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
the fact that she used Amount to pay for medical expenses stemming from car
accidents which occurred prior to the distribution of Amount. Taxpayer further
asserts that she did not have Amount available to deposit into IRA until several
months after the 60-day rollover period expired.

Based on the facts and representations, you request a ruling that the
Internal Revenue Service (the "Service") waive the 60-day rollover requirement

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contained in section 408(d)(3) of the Code with respect to the distribution of
Amount.

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
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)(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) 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.

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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)(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 Service has the authority to waive the 60-day rollover requirement for
a distribution from an IRA where the individual failed to complete a rollover to
another IRA within the 60-day rollover period but was prevented from doing so
because of one of the factors enumerated in Rev. Proc. 2003-16, for example,
errors committed by a financial institution, death, hospitalization, postal error,
incarceration, and/or disability. Taxpayer asserts that she used her distribution of
Amount to pay for medical expenses. Additionally, Taxpayer asserts that she did
not have Amount available to deposit into IRA until months beyond the expiration
of the 60-day rollover period. Accordingly, we find that Taxpayer has not alleged
that any of the factors enumerated in Rev. Proc. 2003-16 prevented her from
timely completing the rollover.

Therefore, pursuant to section 408(d)(3)(I) of the Code, the Service
hereby declines to waive the 60-day rollover requirement with respect to the
distribution of Amount from IRA.

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 at XXXXX.
Please address all correspondence to SE:T:EP:RA:T2.

Sincerely yours,

Jason E. Levine, Manager,
Employee Plans Technical Group 2

Enclosures:
Ruling Letter
Notice of Intention to Disclose