IRS written determination 201608021

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.

COMMISSIONER
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
NOV !4 2015
Uniform Issue List: 402.00-00
Legend:
Taxpayer A
=
Plan B
=
Financial Institution C
=
Employer D
=
Amount 1
=
Amount 2
=
Dear
201608021
This is in response to your request dated July 1, 2015, in which you request a waiver of
the 60-day rollover requirement contained in section 402(c)(3) of the Internal Revenue
Code ("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
of Amount 1 from Plan B.
Taxpayer A asserts that her failure to accomplish a rollover within the 60-day period
prescribed by Code section 402(c)(3) was due to the failure
of Financial Institution C to
inform Taxpayer A
of her ability to roll over Amount 1 to an Individual Retirement
Account
(IRA) as required by section 402(f) of the Code.
Taxpayer A participated
in Plan B administered by Financial Institution C. On April14,
2015, Financial Institution C issued a check in Amount 2 to Taxpayer A due to her
termination
of employment with Employer D. Amount 2 was Amount 1 less taxes
withheld. Taxpayer A represents she was surprised to receive the check and

2
201608021'
immediately contacted Financial Institution C. Taxpayer A was informed that she was
mailed a letter
of instruction in October, 2014. Taxpayer A represents she never
received the notice as she had moved 2 times during the fall
of 2014. After multiple
telephone conversations with representatives of Financial Institution
C, on April 29,
2015, Financial Institution C faxed an undated copy
of the October 2014 letter to
Taxpayer A. The
letter did not contain the required information under section 402(f)
of
the Internal Revenue Code. In June 2015, after the 60-day period had expired,
Taxpayer A spoke to a
financial advisor who informed her
of the 60-day rollover period.
Amount 1 has remained
in Taxpayer A's checking account.
Based
on the facts and representations, you requested a ruling that the Service waive
the 60 day rollover requirement contained
in section 402(c)(3) of the Code with respect
to the distribution
of Amount 1.
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.
Section 402(c)(3)(8)
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.
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)(8)
of the Code provides that an individual retirement account (IRA) is
one type
of eligible retirement plan.
Section 402(f)
of the Code requires the plan administrator of a plan qualified under
section
401 (a) to provide the written explanation described in section 402(f)(1) to any
recipient
of an eligible rollover distribution, as defined in section 402(c)(4). In addition,
sections 403(a)(4)(8) and 457(e)(16)(8) require the
plan administrator
of a section
403(a) plan, or an eligible section 457(b) plan maintained by a governmental employer
described in section 457(e)(1 )(A), to provide the written explanation to any recipient of
an eligible rollover distribution. Further, section 403(b)(8)(8) requires a payor under a

3
201608021
section 403(b) plan to provide the written explanation to the recipient of an eligible
rollover distribution.
Revenue
Procedure 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 A is consistent
with her assertion that her failure to accomplish a timely rollover
of Amount 1 was due to
the failure of Financial Institution C to inform her
of her ability to roll over Amount 1 to an
Individual Retirement Account (IRA) as required by section 402(f)
of the Code
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 1. Taxpayer A is
granted a period of
60 days from the issuance
of this ruling letter to contribute an
amount not to exceed Amount 1 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 sections 402(c).
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.
If you wish to inquire about this ruling, please contact
SE:T:EP:RA:T1.
Enclosures:
Deleted copy
of ruling letter
Notice of Intention to Disclose
Please address all correspondence to
Sincerely,
Cc,_,_Qlo::_ 4 tU:-~
Carlton A. Watkins, Manager
Employee Plans Technical Group 1