IRS written determination 201427026

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
DEVENUE SER
SERVICE

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

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

APR 1 1 2014

<!-- PageHeader="201427026" -->

Uniform Issue List: 408.03-00

T' EP. RA:TI

Legend:

Taxpayer A

=

IRA B

=

Bank C

=

Account D

=

Bank E

=

IRA F

=

Bank G

=

Individual H

=

Amount 1

=

Amount 2

=

Dear
:

This is in response to a request for a private letter ruling dated December 23,
2013, as supplemented by correspondence dated February 19, and March 28,
2014, submitted on your behalf by your authorized representative, in which you
request a waiver of the 60-day rollover requirement contained in section
408(d)(3) of the Internal Revenue Code ("Code").

<!-- PageBreak -->

<!-- PageHeader="201427026" -->

The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested:

Taxpayer A represents that she received a distribution of Amount 1 from IRA B.
Taxpayer A 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 improper
management of her financial affairs by Individual H. Taxpayer A further
represents that Amount 1 has not been used for any other purpose except to
satisfy her required minimum distribution for 2013.

On July 30, 2009, Taxpayer A designated her brother (Individual H) to handle all
of her financial affairs through a power-of-attorney. At the time, Taxpayer A
resided in an assisted living home. The ruling request is accompanied by a letter
from Individual H's physician which states that she is currently being treated for
senile dementia.

In order to consolidate Taxpayer A's accounts, Individual H decided to transfer all
of Taxpayer A's assets to one financial institution (Bank E). On May 13, 2013,
Individual H went to Bank C and represents that he received a check made out to
Taxpayer A representing the distribution of Amount 1 from Taxpayer A's IRA
(IRA B) at Bank C. Individual H represents that he did not complete any
distribution paperwork which would have indicated to him that the distribution
was from an IRA. On May 20, 2013, Amount 1 was deposited into Account D, a
non-IRA account with Bank E.

The mistake was discovered in August of 2013, when Individual H received
documentation regarding required minimum distribution rules relating to IRA B
and contacted Taxpayer A's tax preparer. On September 4, 2013, after the 60-
day rollover period had expired, Amount 1 was transferred to IRA F with Bank G.
In November of 2013, Individual H withdrew Amount 2 from IRA F to cover
Taxpayer's Required Minimum Distribution for 2013 and various living expenses.

Based on the above facts and representations, you request that the Internal
Revenue Service ("Service") waive the 60-day rollover requirement contained
in section 408(d)(3) of the Code with respect to Amount 1.

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 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 -

<!-- PageBreak -->

<!-- PageHeader="201427026" -->

(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) 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) do not apply to any amount required to be distributed under
section 408(a)(6).

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. Only distributions that
occurred after December 31, 2001, are eligible for the waiver under section
408(d)(3)(l) of the Code.

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)(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 information presented and the documentation submitted by Taxpayer A is
consistent with her assertion that her failure to accomplish a timely rollover of
Amount 1 was due to the mismanagement of her financial affairs by Individual H.

<!-- PageBreak -->

<!-- PageHeader="201427026" -->

Therefore, pursuant to section 408(d)(3) of the Code, the Service hereby waives
the 60-day rollover requirement with respect to the distribution of Amount 1 from
IRA B. Provided all other requirements of section 408(d)(3) of the Code, except
the 60-day requirement, were met with respect to Taxpayer A's contribution of
Amount 1 into IRA F on September 4, 2013, such contribution 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 408(a)(6) 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.

A copy of this letter ruling has been sent to your authorized representative
pursuant to a power of attorney on file in this office. If you wish to inquire about
this ruling, please contact
(*

'), SE:T:EP:RA:T1,
at ( .)

Sincerely yours,
Carlton A. Watkins
Carlton A. Watkins, Manager
Employee Plans Technical Group 1

Enclosures:
Deleted Copy of this Letter
Notice of Intention to Disclose, Notice 437

CC: