IRS written determination 201429034

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
TERNAL REVENUE SERV

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

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

201429034

APR 2 1 2014

Uniform Issue List: 408:03:00

T.EP.R.A.+2

Legend:

Taxpayer
\=

IRA X
\=

IRA Y

=

Financial Advisor A
\=

Financial Institution B
\=

Amount
\=

Dear
,

This is in response to your request, dated October 25, 2013, and supplemented
by your March 18, 2014 correspondence, 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 she received a distribution from IRA X totaling Amount.
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 an error made by Financial

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Advisor A. Taxpayer further represents that Amount has not been used for any other
purpose.

On January 20, 2011, Amount was distributed from IRA X. Taxpayer deposited
Amount into her personal checking account. On February 21, 2011, Taxpayer prepared
a check from that account for Amount Reflecting Taxpayer's intent to rollover Amount,
the check was payable to Financial Institution B for deposit into IRA Y. Financial
Advisor A provided Taxpayer with the account number for the account to which Amount
was to be deposited. Taxpayer mailed the check to Financial Advisor A for deposit to
IRA Y. However, the account number provided to Taxpayer was for a non-qualified
account, instead of IRA Y. The check was deposited on February 25, 2011, to the non-
qualified account. Taxpayer discovered the error after the 60-day rollover period had
expired.

Based on the facts and representations, you request a ruling that the Service
waive the 60 day rollover requirement 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) 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
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) 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) of the Code).

Section 408(d)(3)(B) 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

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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)(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) 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.

Rev. Proc. 2003-16, 2003-4 I.R.B. 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.

The information presented and documentation submitted by Taxpayer including a
written statement from the President of Financial Advisor A admitting that Financial
Advisor A provided Taxpayer with the incorrect account number to include on
Taxpayer's check payable to Financial Institution B causing Amount to be deposited to a
non-qualified account, are consistent with her assertion that her failure to accomplish a
timely rollover was caused by an error by Financial Advisor A.

Therefore, pursuant to section 408(d)(3)(I) of the Code, the Service hereby
waives the 60-day rollover requirement with respect to the distribution of Amount from
IRA X. Taxpayer is granted a period of 60 days from the issuance of this ruling letter to
contribute Amount 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 will be considered a
rollover contribution 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.

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

Sincerely yours,
Jason E/ Levine, Manager,
Employee Plans Technical Group 2

Enclosures:
Deleted copy of ruling letter
Notice of Intention to Disclose