Rollover Contributions

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TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
U.I.L. 408.03-00 xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Legend:
Taxpayer A
IRA X
Bank 8
Amount C
Amount E
Division M
StateN
Dear xxxxxxxxxxx:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
OCT 3 0 2014
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This is in response to your request dated June 19, 2014, as supplemented by correspondence dated July 21, 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 (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 an unsolicited distribution from IRA X totaling Amount C. Taxpayer A asserts that his failure to accomplish a rollover within the 60-day period prescribed by section 408(d)(3) of the Code was due to the fact that he was unaware of the distribution.
Taxpayer A maintained IRA X with Bank B. Taxpayer A represents that on
October 11, 2013; Bank B closed out IRA X without his knowledge and turned the funds over to Division M of StateN.
Taxpayer A never intended to take, nor requested, the distribution from IRA X.
He was not aware that IRA X was closed out by Bank Band the funds were turned over to Division M of State N until early April of 2014, when he contacted his tax preparer. Taxpayer A immediately contacted Division M of StateN and received back his IRA X funds on April25, 2014, from StateN. Upon receipt of the funds, on April 25, 2014, Taxpayer A deposited Amount E into IRA X.
Based upon the above facts and representations, you request a ruling 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 E.
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 roll overs.
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 received 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 60t 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 included 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 60day 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 occur after December 31, 2001, are eligible for the waiver under section 408(d)(3)(1) of the Code.
Rev. Proc. 2003-16, 2003-4 I.R. B. 359, 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 his assertion that his failure to accomplish a timely rollover was due to the fact that he was unaware of the distribution.
Therefore, pursuant to section 408(d)(3)(1) of the Code, the Service hereby waives the 60-day rollover requirement with respect to the distribution of Amount
E. Provided all other requirements of Code section 408(d)(3), except the 60-day requirement, were met with respect to the contribution of Amount E into IRA X on April 25, 2014, 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 transactions described herein under the provisions of any other section of either the Code or regulations, which may be applicable thereto.
This ruling is directed only to the taxpayer that requested it. Section 611 O(k)(3) of the Code provides that it may not be used or cited by others 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.
If you have any questions concerning this ruling, please contact xxxxxxxx, at xxxxxxxxxxxx. All correspondence should be addressed to SE:T:EP:RA:T3.
Enclosures:
Deleted copy of letter ruling
Notice 437 cc: xxxxxxxxxxx
Sincerely yours,
~pc~~
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3