TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224 SEP 0·3 2015 Uniform Issue List: 408.03-00 Legend: Taxpayer A = IRAB = Bank C = Amount 1 = Amount 2 = Dear 201548026 This is in response to your request for a ruling dated September 14, 2014, as supplemented by correspondence dated March 17, 2015, from 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 the ruling requested: Taxpayer A represents that he received a distribution from IRA B totaling Amount 1. Taxpayer A asserts that his failure to accomplish a rollover of Amount 1 within the 60-day period prescribed by Code section 408(d)(3) was due to stress caused by legal proceedings being pursued by his ex-wife. Taxpayer A maintained IRA Bat Bank C. Believing his ex-wife was about to initiate legal proceedings to attach his IRA, Taxpayer A on September 5, 2013, requested a distribution of Amount 1 from IRA B. Taxpayer A received a check

~--------------~---- Page2 201548026 for Amount 1 less termination fees of Amount 2 which were withheld by Bank C. Taxpayer A set the check aside continues to hold the check uncashed. Taxpayer A represents that a friend suggested he withdraw Amount 1 from IRA B. Taxpayer A further represents that the stress caused by his divorce proceedings as well as some medical issues prevented him from completing a rollover. However, Taxpayer A indicated he did not remember he had taken the distribution until his tax-preparer in early 2014 questioned the Form 1099 he received concerning the distribution. 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 1. 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 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 60th 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 includible 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.

Page 3 201548026 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. Only distributions that occurred 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 (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), 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 Service has the authority to waive the 60-day rollover requirement for a distribution from an IRA where the individual failed to complete a rollover to another IRA within the 60-day rollover period but was prevented from doing so because of one of the factors enumerated above in Revenue Procedure 2003-16. In this instance, however, the Service finds that the documentation and materials provided by Taxpayer A do not demonstrate how any of these factors resulted in his failure to accomplish a timely rollover of Amount 1. Taxpayer A represented that he took the distribution because of anticipated legal proceedings by his exwife and subsequently forgot he had taken the distribution until after the 60-day period had expired. Therefore, pursuant to section 408(d)(3)(1) of the Code, Taxpayer A's request that the Service waive the 60-day rollover requirement with respect to the distribution of Amount 1 is declined, and Amount 1 is therefore includible in Taxpayer A's gross income for the 2013 taxable year. 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 who requested it. Section 611 O(k)(3) of the Code provides that it may not be used or cited as precedent.

Page4 2'01548026 A copy of this letter ruling has been sent to your authorized representative pursuant to a power of attorney on file in this office. If you wish to inquire about this ruling, please contact (ID # ), , at ( ) or Sincerely yours, UdJi;rO·v/~ Manager Employee Plans Technical Group 1 Enclosures: Deleted Copy of this Letter Notice of Intention to Disclose, Notice 437 cc: