IRS written determination 201437024

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
JUN 17 2014
Uniform Issue List: 408.03.00
Legend:
Taxpayer
=
IRA X
=
Financial Institution A
=
Financial Institution B
=
Amount 1
=
Amount 2
=
Amount 3
=
Dear
2014370;l4
This is in response to your request, dated February 19, 2013, as supplemented
by correspondence dated March 25, 2014,
in which your authorized representative, on
your behalf, requested 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 he received a distribution of Amount 1 from IRA X.
Amount 2 was withheld from the distribution for federal income tax. Within 60 days of
the date of distribution, Taxpayer rolled over the net distribution, Amount 3, into IRA X.

2
201437024
Taxpayer asserts that his failure to accomplish a rollover of Amount 2 within the 60 day
period prescribed by section 408(d)(3) of the Code was due to an error made by his
financial adviser, a representative
of Financial Institution A. Taxpayer represents that
Amount 2 has not been used for any other purpose.
Taxpayer met with his investment adviser at Financial
Institution A, the custodian
of IRA X. A portion of IRA X was invested in an annuity with Financial Institution B. The
adviser indicated that he would arrange a withdrawal from the annuity at Financial
Institution B to be rolled over into IRA X. The adviser obtained the necessary form from
Financial Institution
Band completed it for Taxpayer's signature. However, the sections
of the form indicating that it was intended to be a direct transfer within IRA X and that
there should be no tax withholding were not completed
Taxpayer signed the distribution form on September
1, 2012. A check for
Amount 3 with Amount 2 being withheld was issued on September 14, 2012 and
received by Taxpayer on or about September 18, 2012. Taxpayer immediately gave the
check to his financial adviser and it was deposited
in IRA X on September 19, 2012.
Taxpayer represents that he did not realize that taxes had been withheld until after the
expiration
of the 60-day rollover period.
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 distribution of Amount 2.
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).

3
20.1437024
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
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)(0)
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 is
consistent with his assertion that his failure to accomplish a timely rollover was caused
by an error on the part
of a representative of Financial Institution A.
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 2 from
IRA
X. Taxpayer is granted a period of 60 days from the issuance of this ruling letter to
contribute Amount 2 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 2 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.

4
201431024
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*****. Please address all
correspondence to SE:T:EP:RA:T2
Enclosures:
cc:
Deleted copy
of ruling letter
Notice
of Intention to Disclose