IRA Distribution Rollover Requirement Waived

U.I.L. 408.03-00

This is in response to your letter dated July 23, 2015, as supplemented by correspondence dated October 5, 2015, 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 (Code).

The following facts and representations have been submitted under penalty of perjury in support of your request.

On Date 2, Taxpayer A received a distribution from IRA X totaling Amount D with the intent to rollover Amount D into another IRA. 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 medical condition of his mother-in-law, Individual B, and his duties as caregiver during the 60-day rollover period which impaired his ability to accomplish a timely rollover.

On Date 1, Individual B, Taxpayer A's mother-in-law, was involved in a serious motor vehicle accident and was med-flighted to Hospital T where she stayed in the intensive care unit until Date 3 when she was transferred to Facility U. On Date 4, Individual B was transferred to Hospital W where she passed away on Date 5. Taxpayer A represents that during the 60-day rollover period, he and his spouse stayed with Individual B looking after her care.

Medical documentation shows that during the 60-day rollover period, Individual B was hospitalized and ultimately died as the result of an automobile accident.

When Taxpayer A and his spouse returned home after the death of Individual B, Taxpayer A realized that Amount D was not rolled over within the 60-day rollover period. Taxpayer A represents that Amount D has not been used for any other purpose.

Based on the facts and representations, Taxpayer A requests that the Internal Revenue Service (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 --

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)(I) 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 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)(I) 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)(I), 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 B and his duties as her caregiver during the 60-day rollover period which impaired his ability to accomplish a timely rollover.

Therefore, pursuant to Code section 408(d)(3)(I), the Service hereby waives the 60-day rollover requirement with respect to the distribution of Amount D from IRA X. Taxpayer A is granted a period of 60 days from the issuance of the ruling letter to contribute an amount not to exceed Amount D into a rollover IRA. Provided all other requirements of section 408(d)(3) of the Code, except the 60-day requirement, are met with respect to such contribution, the 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 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.

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 * * * at * * *. All correspondence should be addressed to SE:T:EP:RA:T:1.