Rollover Contributions

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
U.I.L. 408.03-00 xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Legend:
Taxpayer A = xxxxxxxxxxx
Individual 8
= xxxxxxxxxxx
IRA X = xxxxxxxxxxx
Amount D
= xxxxxxxxxxx
Company C
= xxxxxxxxxxx
Date 1
= xxxxxxxxxxx
Date 2
= xxxxxxxxxxx
Date 3
= xxxxxxxxxxx
Dear xxxxxxxxxx:
JAN 0 5 2015
201514.021
This is in response to your letter dated July 16, 2014, as supplemented by correspondence dated September 22, 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.
On Date 1, Taxpayer A 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 the medical condition of Individual B, spouse of Taxpayer A, and his duties as her caregiver which impaired his ability to accomplish a timely rollover.
On Date 1, Taxpayer A withdrew Amount D from IRA X with the intent to rollover the funds back into IRA X within the 60-day rollover period.
Taxpayer A represents that prior to and during the 60-day rollover period, Individual B, Taxpayer A's spouse, experienced numerous medical problems, requiring hospitalization, surgeries, and his full-time service as primary caregiver.
Individual B was confined to bed for many weeks. Taxpayer A took care of her medical needs, as well as the daily needs of his children and other daily household tasks, in addition to his business responsibilities. Individual B required 24-hour care for more than 6 weeks since she was bedridden during that time, which included the 60-day rollover period.
On Date 2, a Monday, which was one day after the 60-day rollover period, Taxpayer A contacted Company C to redeposit Amount D into IRA X. Company C advised Taxpayer A to obtain a cashier's check, and told him that as long as it was post-marked that day, the repayment would be treated as being timely received for purposes of the 60-day rollover requirement. Accordingly, as advised by Company C, Taxpayer A sent the cashier's check totaling Amount D to Company C to redeposit Amount D into IRA X. Company C redeposited Amount D into IRA X on Date 3.
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 the distribution of 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 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 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)(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)(0) 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)(0) 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 the medical condition of Individual 8 and his duties as her caregiver which impaired his ability to accomplish a timely rollover.
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 X on Date 3 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 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.
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 xxxxxxxxx, at xxxxxxx. All correspondence should be addressed to SE:T:EP:RA:T:3.
Enclosures:
Deleted copy of letter ruling
Notice of Intention to Disclose cc: xxxxxxxxxx
Sincerely yours,
_/ /~ /
_-'7 /
~ p vl./"''w-/'-~
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3