TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224 DEC 21 2015 Uniform Issue List: 408.03-00 Legend Taxpayer A = IRAB = SEP-IRA C = Financial Institution D = Amount 1 = Dear This is in response to your request dated July 19, 2015, as supplemented by correspondence received October 28, 2015, and November 18, 2015, 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 on March 5, 2015, she received a distribution equal to Amount 1 from IRA 8, an individual retirement account ("IRA") described in section 408(a) of the Code, which was maintained by Financial Institution D. Taxpayer A asserts that her failure to accomplish a rollover

within the 60-day period prescribed by section 408(d)(3)(A) was due to health issues.

2 On March 5, 2015, Taxpayer A requested a distribution equal to Amount 1 from IRA B with the intention to complete a rollover. After going through a bitter divorce, Taxpayer A had purchased a business with respect to which spring was the busiest season. Due to high turnover of employees, Taxpayer A was working seven days a week and was exhausted by all of her efforts. Taxpayer A had difficulty sleeping, suffered from anxiety, and experienced memory lapses. Consequently, Taxpayer A did not deposit Amount 1 into her other IRA, SEP-IRA C, until May 12, 2015, approximately seven days after the expiration of the 60-day rollover period. SEP-IRA Cis also maintained by Financial Institution D. Taxpayer A submitted documentation from the physician who treated Taxpayer A's health issues. Based on the above facts and representations, Taxpayer A requests a waiver of the 60-day rollover requirement with respect to the distribution of Amount 1 from IRA B. Section 408(a) of the Code defines an IRA to mean a trust created or organized in the United States, and requires that the trustee be a bank or an approved nonbank trustee. 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. Section 408(d)(3) of the Code provides the rules applicable to IRA rollovers. Section 408(d)(3)(A) of the Code provides that section 408(d)(1) 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 or 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

3 201612016 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. 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 of the Treasury

may waive the 60-day requirement under sections 408(d)(3)(A) and 408(d)(3)(D) 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. Rev. Proc. 2003-16, 2003-4 I. A.B. 359, provides that the Service will issue a ruling waiving the 60-day rollover requirement in cases 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 taxpayer. In determining whether to grant a waiver of the 60-day rollover requirement pursuant to section 408(d)(3)(1) of the Code, 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 information presented and documentation submitted by Taxpayer A are consistent with Taxpayer A's assertion that she failed to complete a timely rollover of the distribution of Amount 1 from IRA 8 due to health issues. Therefore, pursuant to section 408(d)(3)(1) of the

Code, the Service waives the 60- day rollover requirement with respect to the distribution of Amount 1 from IRA B. Provided all other requirements of section 408(d)(3), except the 60-day requirement, were met with respect to the contribution of Amount 1 to SEP-IRA C, the contribution of this amount is considered a rollover contribution within the meaning of section 408(d)(3). 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.

4 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. If you wish to inquire about this ruling, please contact at Please address all correspondence to SE:T:EP:RA:T1. Enclosures: Notice of Intention to Disclose Deleted copy of this letter Sincerely yours, ) .~ arlton A. Watkins, Manager Employee Plans Technical Group 1