Rollover Contributions

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TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
MAR 19 20JS
U.I.L. 408.03-00 xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx
Legend:
Taxpayer A
Individual M
IRA X
Amount D
Date 1
Date 2
Dear xxxxxxxxx:
= xxxxxxxxxxxx
= xxxxxxxxxxxx
= xxxxxxxxxxxx
= xxxxxxxxxxx
= xxxxxxxxxxx
= xxxxxxxxxxx
This is in response to your letter dated October 1, 2014, as supplemented by correspondence dated January 15, 2015, submitted by you, 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 her husband, Individual M, received a distribution from IRA X totaling Amount D. Taxpayer A asserts that her failure to accomplish a rollover within the 60-day period prescribed by section 408(d)(3) was due to death of her husband, Individual M, and her lack of knowledge that Amount D was withdrawn from IRA X by Individual M.
Taxpayer A represents that on Date 1, her husband, Individual M, withdrew
Amount D from IRA X with intent to rollover Amount D within the 60-day rollover period. Taxpayer A further represents that prior to and within the 60-day period, Individual M, her husband, was hospitalized with numerous complications· following his back surgery. The withdrawal transactions from IRA X were made by Individual M while he was in the hospital. On Date 2, Individual M passed away.
Taxpayer A asserts that she was not aware of the distribution of Amount D from
IRA X until February, 2014, when her tax prepare told her of the withdrawal transactions from IRA X. Amount D has not been used for any other purpose.
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 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)

(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)(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 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 her assertion that her failure to accomplish a timely rollover was due to the death of her husband, Individual M and her lack of knowledge that Amount D was withdrawn from IRA X by her husband, Individual M.
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 to a rollover IRA 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 6110(k)(3) of the Code provides that it may not be used or cited as precedent.
If you have any questions regarding this letter, please contact xxxxxxxxxxxxxxxx, at xxxxxxxxxx. All correspondence should be addressed to SE:T:EP:RA:T:2.
Enclosures:
Deleted copy of letter ruling
Notice of Intention to Disclose
Sincerely yours, herri M. Edelman, Manager
Employee Plans Technical Group 2