Rollover Contributions

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
Uniform Issue List: 408.03-00
Legend:
Taxpayer
=
Amount =
IRA X =
IRAY =
Account =
Custodian =
LLC
=
Dear
201506014
This is in response to a letter dated September 12, 2013, as supplemented by correspondence dated March 12, 2014, April 30, 2014, and June 26, 2014, 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").
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The following facts and representations have been submitted under penalty of perjury in support of the ruling requested.
On July 19, 2012, Taxpayer received a distribution of Amount from IRA X.
Taxpayer asserts that her failure to accomplish a rollover of Amount within the
60-day period prescribed by section 408(d)(3) of the Code was due to improper rollover instructions from Custodian.
Taxpayer wanted to invest in LLC through her IRA. Custodian instructed
Taxpayer to establish IRA Y with Custodian. Taxpayer asserts that Custodian gave her incorrect instructions regarding transferring Amount to IRA Custodian should have told Taxpayer to transfer Amount to IRA Y through a trustee-totrustee transfer after which Amount would be invested in LLC. Instead, Custodian instructed Taxpayer to transfer Amount directly to LLC. As a result of Custodian's incorrect instructions, Amount was not rolled over to IRA Y, but was instead placed directly in Account, the business account for LLC.
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 408(d)(3) of the Code with respect to the distribution of Amount.
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 prope~) is paid into an IRA for the benefit of such individual not later than the 60 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 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 3 2"01506014 regard to section 408(d)(3) of the Code).
Section 408(d)(3)(8) 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) of the Code.
Section 408(d)(3)(D) of the Code provides a similar 60-day rollover period for partial relievers.
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 requirement.
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 408(d)(3)(1) 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 her assertion that her failure to accomplish a timely rollover was due to improper rollover instructions from Custodian.
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 from IRA X. Provided all other requirements of section 408(d)(3) of the Code, except the 60-day requirement, were met with respect to the contribution of Amount to IRA Y, such contribution will be considered a valid 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 401 (a)(9) of the Code.
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201506014
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.
This letter is directed only to the taxpayer who requested it. Section
611 O(k)(3) of the Code provides that it may not be used or cited as precedent.
If you have any questions, please contact
Please address all correspondence to SE:T:EP:RA:T2.
Sincerely yours,
Jason E. Levine, Manager,
Employee Plans Technical Group 2