IRS written determination 201611020

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
REVENUS BERI

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

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

DEC 1:5 2015

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Uniform Issue List: 402.00-00

T:EP. RA: TI

Legend:

Taxpayer A

=

Company B

=

Plan C

=

Financial Institution D

=

Stock E

=

IRA F

=

Account G

=

Dear
:

This is in response to your request for a private letter ruling dated March
14, 2015, as supplemented by correspondence dated April 7, and August 20,
2015, in which you request a waiver of the 60-day rollover requirement
contained in section 402(c)(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 A represents that he received a distribution of Stock E from

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Plan C on September 18, 2014. Taxpayer A asserts that his failure to
accomplish a rollover within the 60-day period prescribed by section 402(c)(3)
was due to a miscommunication with a representative of Financial Institution D
which resulted in Stock E being placed in a non-IRA account. Taxpayer A further
represents that Stock E has not been used for any other purpose.

Taxpayer A was employed by Company B and participated in Plan C, a
qualified plan pursuant to sections 401(a) and 401(k) of the Code, maintained
with Financial Institution D. As the result of his pending retirement, Taxpayer A
requested a distribution of his 401(k) account. Taxpayer A wanted to keep the
funds in a retirement vehicle with Financial Institution D and discussed his
options with representatives of Financial Institution D. On September 18, 2014,
Taxpayer A received a total distribution from Plan C, which consisted of Stock E.
Instead of the shares being transferred into IRA F, the shares were transferred
into Account G, a non-IRA brokerage account. Taxpayer became aware of the
taxable distribution when he received a Form 1099-R in early 2015.

Based on the facts and representations, you request a ruling that the
Internal Revenue Service waive the 60 day rollover requirement contained in
section 402(c)(3) of the Code with respect to the distribution of Stock E.

Section 402(c) of the Code provides that if any portion of the balance to
the credit of an employee in a qualified trust is paid to the employee in an
eligible rollover distribution, and the distributee transfers any portion of the
property received in such distribution to an eligible retirement plan, and in the
case of a distribution of property other than money, the amount so transferred
consists of the property distributed, then such distribution (to the extent
transferred) shall not be includible in gross income for the taxable year in which
paid. Section 402(c)(3)(A) states that such rollover must be accomplished within
60 days following the day on which the distributee received the property. An
individual retirement account (IRA) constitutes one form of eligible retirement
plan.

Section 402(c)(4) of the Code provides that an eligible rollover distribution
shall not include any distribution to the extent such distribution is required under
section 401(a)(9).

Section 402(c)(3)(B) of the Code provides, in relevant part, that the
Secretary may waive the 60-day requirement under sections 402(c) 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 402(c)(3)(B) of the
Code.

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Section 401(a)(31) provides the rules for governing "direct transfers of
eligible rollover distributions".

Section 1.401(a)(31)-1 of the Income Tax Regulations, Question and
Answer-15, provides, in relevant part, that an eligible rollover distribution that is
paid to an eligible retirement plan in a direct rollover is a distribution and rollover,
and not a transfer of assets and liabilities.

Revenue Procedure 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 402(c)(3) 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 the documentation submitted by
Taxpayer A is consistent with his assertion that his failure to accomplish a
timely rollover of Stock E was due a miscommunication between himself and
Financial Institution D.

Therefore, pursuant to section 402(c)(3)(B) of the Code, the Service
hereby waives the 60-day rollover requirement with respect to the distribution of
Stock E from Plan C. Taxpayer A is granted a period of 60 days from the
issuance of this letter ruling to transfer Stock E into a rollover IRA. Provided all
other requirements of section 402(c) of the Code, except the 60-day requirement,
are met with respect to such contribution, the contribution will be considered a
rollover contribution within the meaning of section 402(c) 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
6110(k)(3) of the Code provides that it may not be used or cited as precedent.

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201611020

If you wish to inquire about this ruling, please contact
(I.D. #
),
at
,
or

(
)

Sincerely yours,

Manager
Employee Plans Technical Group 1

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