IRS written determination 201432035

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
Uniform Issue List: 408.03-00
201482035
MAY 14 2014
~f .. rf FP: r<:A.·T~
Legend:
Taxpayer
=
IRAX =
IRAY =
Account F =
Financial Institution =
Amount K
=
Amount L =
Amount N =
Amount P =
Dear
This is
in response to a letter dated April 10, 2013, submitted by your
authorized representative
on your behalf, 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
201432035
The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested.
Taxpayer maintained IRA X and IRA
Y. Taxpayer asserts that he received
distributions
of Amount K from IRA X and Amount L from IRA Y. Taxpayer
asserts that his
failure to rollover these amounts within the 60-day period
prescribed by section 408(d)(3)
of the Code was due to an existing mental
condition which impaired his ability to make sound financial decisions. Taxpayer
further represents that Amount K and Amount L have not been used for any other
purpose.
Taxpayer has been treated for a medical condition that impairs his
neurological functions. After being diagnosed with this medical condition,
Taxpayer received
financial advice from his attorney that he should change the
beneficiary designation within
IRA X and IRA Y and also take a small distribution
from his IRAs in order to make a charitable contribution. Instead
of following his
attorney's advice, on October 20, 2010, Taxpayer, confused from his medical
condition, directed Financial Institution to distribute Amount K from IRA X and
Amount L from
IRA Y to Account F (established for the beneficiary to whom his
attorney advised him to name as his IRA X
andY designated beneficiary), with
the mistaken belief that he was following his attorney's advice. On January 25,
2012, Financial Institution allowed the return of Amount N to IRA X, from which
Amount P was
subsequently transferred to IRA
Yon January 31, 2012.
Based on the facts and representations, you request a ruling that the Internal
Revenue Service ("Service") waive the 60-day rollover requirement with respect
to the distributions
of Amount K from IRA X and of Amount L from IRA Y.
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) the entire amount received (including money and any other propert~) is
paid into an IRA for the benefit
of such individual not later than the 60
day after the day on which the individual receives the payment
or
distribution; or

3
201432035
(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 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)).
Section 408(d)(3)(8)
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).
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 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.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), 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 documentation from his treating physician and the attorney who
advised him to change the beneficiary designations
of IRA X and IRA Y, is
consistent with his assertion that his failure to accomplish a timely
rollover
of
Amount K and Amount L was caused by an existing medical condition which
impaired his ability to make sound financial decisions.
. ,

. .
4
2Gl43203S
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 K from IRA X and Amount L from IRA Y. Provided all other requirements
of section 408(d)(3) of the Code, except the 60-day requirement, were met with
respect to the return
of Amount N to IRA X, such contribution will be considered a
valid 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
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
611 O(k)(3) of the Code provides that it may not be used or cited as precedent.
A copy
of this letter has been sent to your authorized representative in
accordance with a power
of attorney on file in this office.
If you have any questions, please contact
Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
CC:
Deleted Copy
of Ruling Letter
Notice
of Intention to Disclose