TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224 MAR 0 3 2016 Uniform Issue List: 408.03-00 Legend: Taxpayer A = IRAB = Company C = Annuity D = Company E = Account F = Financial Institution G = Individual H = Amount 1 = Dear 201622039 This is in response to your request for a private letter ruling dated December 3, 2015, as supplemented by correspondence dated January 5, and February 15, 2016, 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.

Page 2 21)1622039 Taxpayer A represents that he received a distribution of Amount 1 from IRA B. Taxpayer A asserts that his inability to accomplish a rollover within the 60-day period prescribed by section 408(d)(3)

was due to a failure by Company E to follow Taxpayer A's instructions that Amount 1 be placed in an IRA annuity. Taxpayer A further represents that Amount 1 has not been used for any other purpose. Taxpayer A maintained IRA B with Company C. On December 17, 2013, Taxpayer A took a distribution of Amount 1 from IRA B. The funds were deposited into Account F with Financial Institution G. Taxpayer A intended to roll Amount 1 into an IRA annuity with Company E. Taxpayer communicated his intention to Individual H, an employee of Company E. He considered this employee to be his financial advisor at Company E and relied on him to complete the IRA application form and oversee the rollover. Individual H included Taxpayer A's social security number and the word "IRA" on the memo line of the check Taxpayer A prepared for Amount 1. In addition, in the section marked "Type of Plan" on the application to open the annuity, Individual H checked "IRA". Taxpayer A assumed all necessary actions were taken to complete the rollover when he signed the application. For unknown reasons, the funds were deposited into Annuity D, a nonqualified annuity. Taxpayer B did not become aware of the distribution was includible in his gross income until he received Notice CP3219A from the Internal Revenue Service on November 16, 2015. The ruling request is accompanied by a letter from Individual H in which he acknowledges a processing error caused Amount 1 to be deposited into a non-IRA annuity. Based on the facts and representations, you request a ruling that the Internal Revenue 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

Page 3 201622039 (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. 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.S. 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 information presented and documentation submitted by Taxpayer A are consistent with his assertion that his inability to accomplish a timely rollover of Amount 1 was due to a failure by Company E to follow Taxpayer B's instructions that Amount 1 be placed in an IRA annuity. Therefore, pursuant to section 408(d)(3)(1) of the Code, the Service hereby waives the 60-day rollover requirement with respect to the distribution of

Page4 201622039 Amount 2 from IRA B. Taxpayer A is granted a period of 60 days from the issuance of this letter ruling to transfer an amount not to exceed Amount 1 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 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 who 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 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 (I.D. # ), , at or ( ) Enclosures: Deleted copy of ruling letter Notice of Intention to Disclose cc: Sincerely yours, ~~ Manager Employee Plans Technical Group 1