Rollover Contributions

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEC 1 0 2014
U.I.L. 408.03-00 xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx Legend:
Taxpayer A =xxxxxxxxxxxxxx
Individual M =xxxxxxxxxxxxxx
IRA X
=xxxxxxxxxxxxxx
Bank B =xxxxxxxxxxxxxx
BankE = xxxxxxxxxxxxxx
Amount C = xxxxxxxxxxxxxx
Amount D =xxxxxxxxxxxxxx
Amount F = xxxxxxxxxxxxxx
Account G =xxxxxxxxxxxxxx
IRAY
= xxxxxxxxxxxxx
Date 1 = xxxxxxxxxxxxx
Date 2 = xxxxxxxxxxxxx
Date 3 =xxxxxxxxxxxxxx
SE: r:EP (2~(T3
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Date4 =xxxxxxxxxxxxxx
201510062
Date 5 =xxxxxxxxxxxxxx
Date 6 =xxxxxxxxxxxxxx
Date 7 = xxxxxxxxxxxxxx
Dear xxxxxxxxxx:
This is in response to your letter dated June 23, 2014, as supplemented by correspondence dated September 17, 2014, and September 30, 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 your request.
Taxpayer A represents that he received a distribution from IRA X totaling Amount
D. Taxpayer A asserts that his failure to accomplish a rollover within the 60-day period prescribed by section 408(d)(3) was due to his extreme emotional distress caused by the death of his father, wife, and mother.
Taxpayer A represents that on Date 2, his wife, Individual M, passed away.
Taxpayer A further represents that following the death of his wife, he attended the funeral of his father who passed away on Date 1, three days prior to Date 2.
On Date 3, Taxpayer A received and deposited a distribution from Individual M's IRA X totaling Amount D into a non- interest bearing account with Bank B. Six days after the distribution, Taxpayer A's mother passed away on Date 4. On Date 5, Taxpayer A issued a check from Bank B totaling Amount C payable to himself and deposited it into his checking account with Bank E. Taxpayer A represents that funds remained with Bank E until Date 6 at which time Amount F was transferred to Account G with Bank E. Subsequently, on Date 7, Taxpayer A deposited Amount D into IRA Y.
During and following the 60-day period, Taxpayer A's full attention was to managing the estates of his wife and father and the medical care for his mother prior to her death which occurred within the 60-day rollover period.
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Based on the facts and representations, Taxpayer A requests that the Internal Revenue Service (the Service) waive the 60-day rollover requirement with respect to Amount D.
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)

(ii) 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 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)(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 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).
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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 and 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, or 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 his extreme emotional distress caused by the death of his father, wife and mother.
Therefore, pursuant to Code section 408(d)(3)(1), the Service hereby waives the 60-day rollover requirement with respect to the distribution of Amount D 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 such contribution, the contribution of Amount D into IRA Y 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 401 (a)(9) 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 that requested it. Section 611 O(k)(3) of the Code provides that it may not be used or cited as precedent.
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A copy of this letter is being sent to your authorized representative pursuant to a Power of Attorney on file with this office.
If you have any questions regarding this letter, please contact xxxxxxxxxx, at xxxxxxxxxxxxx. All correspondence should be addressed to SE:T:EP:RA:T:3.
Enclosures:
Deleted copy of letter ruling
Notice of Intention to Disclose cc: xxxxxxxxxxxxxxxx
Sincerely yours,
~~~~
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3