IRS written determination 201514020

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.

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TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
JA.N 0 9 ZO 15
Uniform Issue List: 402.08-00
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xxxxx
Legend:
Taxpayer
Decedent
Plan
IRA
Amount
Financial Institution
Court
State
Dear XXXXX:
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201514020
This is in response to your request dated September 5, 2013, submitted on your
behalf by your authorized representative,
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

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Taxpayer represents that her husband, Decedent, requested a distribution from
Plan totaling Amount. Taxpayer asserts that Decedent's failure to accomplish a rollover
within the 60-day period prescribed by section 402(c)(3)
of the Code was due to
Decedent's death and subsequent decision by Financial Institution to disallow Amount
to be
rolled over into IRA within the 60-day period. Taxpayer further represents that
Amount has not been used for any other purpose.
Taxpayer represents that Decedent was a participant
in Plan. On August 27,
2012, Decedent elected to receive a distribution
of Amount from Plan and established
IRA at Financial Institution. On September 20, 2012, Decedent passed away. On
December 21, 2012, the Plan issued two checks totaling Amount to Financial Institution
for the benefit
of Decedent.
When Financial Institution received the checks from Plan they refused to deposit
them into
IRA because Decedent had died.
On May 13, 2013, Plan paid Amount, less
income taxes withheld, to Decedent's
estate.
Taxpayer represents that she is qualified as the administrator
of Decedent's
estate, and at
all times since then has acted as the sole administrator
of Decedent's
estate. Taxpayer has provided a certificate from Court, evidencing this fact.
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 402(c)(3)
of the Code with respect to the distribution of Amount.
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, 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 IRA constitutes one
form
of an 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) (related to required minimum distributions).
Section 402(c)(3)(8) of the Code provides, in relevant part, that the Secretary
may waive the 60-day requirement under section 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.
Section 401(a)(31) provides the
rules for governing "direct transfers
of eligible
rollover distributions."

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Z01514020
Section 1.401(a)(31)-1 of the Income Tax Regulations (the "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
or assets and liabilities.
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 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 documentation submitted by Taxpayer is
consistent with Taxpayer's assertion that Decedent's failure to accomplish a timely
rollover was due to Decedent's death and subsequent decision by Financial Institution
to disallow Amount to be rolled over into
IRA within the 60-day period.
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 Amount from
Plan. Taxpayer is granted a period
of 60 days from the issuance of this ruling letter to
contribute Amount into a Rollover IRA
in Decedent's name with Taxpayer as the
designated beneficiary. Provided all other requirements
of section 402(c)(3), 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)(3).
We note that the Rollover IRA into which Amount may be rolled over will not have
a "designated beneficiary" as that term is defined
in section 401 (a)(9) of the Code. The
section
401 (a)(9) distribution period with respect to the Rollover IRA will be that
applicable to an IRA owner who dies prior to attaining his required beginning date
without having designated a beneficiary thereof.
The scope
of the Taxpayer's powers is a matter of state law, in her capacity as
sole administrator
of Decedent's estate. This ruling assumes that Taxpayer's actions in
contributing Amount into an IRA set up
in Decedent's name is in accordance with the
laws
of State and pursuant to Taxpayer's authority as sole administrator of Decedent's
estate.
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
in
this ruling under the provisions of any other section of either the Code or regulations
which may be applicable.

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201514020
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.
Pursuant to a power
of attorney on file with this office, a copy of this letter is
being sent to your authorized representatives
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If you wish to inquire about this ruling, please contact XXXXX at (XXX) XXX-
XXXX. Please address
all correspondence to SE:T:EP:RA:T2.
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
cc:
xxxxx
xxxxx
xxxxx
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