IRS written determination 201429032

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

INTERNAL
DEVENUE SEK

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

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

APR 2 3 2014

201429032

Uniform Issue List: 408.03-00

XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX

Ti EP. R.A. TI

Legend:

Taxpayer A

= XXXXXXXXXXXXXX

IRA B

= XXXXXXXXXXXXXX

Financial Institution C

= XXXXXXXXXXXXXX

Account D

= XXXXXXXXXXXXXX XXXXXXXXXXXXXX

Amount 1

= XXXXXXXXXXXXXX

Amount 2

= XXXXXXXXXXXXXX

Amount 3

= XXXXXXXXXXXXXX

Dear XXXXXXXXXXXXXX:

This letter is in response to your request dated May 8, 2013, as supplemented by
correspondence dated April 7, 2014, in which you 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 A represents that she received a distribution from IRA B totaling Amount 2.
Taxpayer A asserts that her failure to accomplish a rollover of Amount 2 within the 60-day
period prescribed by section 408(d)(3) was due to an error committed by Financial
Institution C.

Taxpayer A represents that she maintains IRA B at Financial Institution C. On August 20,
2012, Taxpayer A completed a form with Financial Institution C in order to receive Amount
1, her Required Minimum Distribution ("RMD") for 2012. However, the distribution was not
recorded properly and did not appear on the financial statement which Taxpayer A received
from Financial Institution C for the period ending September 30, 2012. As a result, on
December 5, 2012, a second RMD was distributed to Taxpayer A totaling Amount 2. Both

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of these distributions were transferred directly to Account D, Taxpayer A's brokerage
account with Financial Institution C. The 60-day rollover period with respect to the
distribution of Amount 2 had expired before Taxpayer A realized that Financial Institution C
had reported a single RMD withdrawal of Amount 2 on its year-end report while reporting
withdrawals totaling Amount 3 (the sum of Amounts 1 and 2) on the Form 1099-R for 2012.
Taxpayer A has not used Amount 2 for any other purpose.

Based on the facts and representations, you request a ruling that the Internal Revenue
Service waive the 60-day rollover requirement contained in section 408(d)(3) of the Code
with respect to the distribution of Amount 2 from IRA B.

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 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) 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

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requirement. Only distributions that occurred after December 31, 2001, are eligible for the
waiver under section 408(d)(3)(I) 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)(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 A is consistent with
her assertion that she received the distribution of Amount 2 from IRA B because of incorrect
financial statements furnished to her by Financial Institution C, which resulted in a duplicate
RMD for 2012.

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 2 from IRA B. Taxpayer
A is granted a period of 60 days from the issuance of this ruling letter to contribute Amount
2 back into IRA B or another rollover IRA account. Provided all other requirements of
section 408(d)(3) of the Code, except the 60-day requirement, are met with respect to such
contribution, 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 any 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 is being sent to your authorized representative pursuant to a Power
of Attorney on file in this office.

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If you wish to inquire about this ruling, please contact XXXXXXXXXXX (ID XXXXXXXXX) at
(XXX) XXX-XXXX. Please address all correspondence to SE:T:EP:RA:T1.
☒

Sincerely,
Carlton A. Watkins

Carlton A. Watkins, Manager
Employee Plans Technical Group 1

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