UI No. 408.03-00
   Date: June 17, 2010
   Refer Reply To: SE:T:EP:RA:T1

   Dear * * *:
   This letter is in response to a request for a letter ruling dated November
22, 2009, as supplemented by correspondence dated February 23, 2010, as
submitted 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 (the "Code").

   The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested:

   Taxpayer A asserts that her failure to accomplish a rollover within the
60-day period prescribed by section 408(d)(3) of the Code was due to her
confusion regarding her financial affairs resulting from the recent death of her
spouse and her ongoing mental condition.

   Taxpayer A, age 79 at the time of the events described below, represents that
she was the owner of a qualified individual retirement arrangement (IRA X),
established and maintained at Financial Institution B under the rules of section
408 of the Code.   [*2]  Taxpayer A represents that she wanted to change
investments and requested the distribution of her "Flexible Savings Certificate"
from Financial Institution B.

   On November 8, 20* * *, she received a distribution totaling Amount 1 from
IRA X with the intent of depositing the funds at Financial Institution C. On
November 28, 20* * *, Taxpayer A deposited Amount 1 in Account D, a non-IRA
certificate of deposit at Financial Institution C.

   Taxpayer A represents that her deceased husband had previously handled all of
the couple's financial affairs and she was new to handling the finances. In
addition, Taxpayer A's son was deployed to Iraq during this time, adding to her
ongoing stress, anxiety, and mental anguish.

   Taxpayer A represents that, as a result of her mental condition, she did not
understand the consequences of removing the funds from her IRA and failing to
re-deposit them within sixty (60) days into another IRA. Taxpayer A further
represents that Amount 1 remains in Account D at Financial Institution C and has
not been used for any purpose.

   Documentation submitted with Taxpayer A's request shows that for the duration
of the 60-day period after which Amount 1 was distributed and thereafter,   [*3]
Taxpayer A was in declining mental faculties, confused about her financial
affairs and was incapable of making sound decisions pertaining to her finances.
Taxpayer A's son is now handling her finances.

   Based on the above facts and representations, you request a ruling that the
Internal Revenue Service ("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   [*4]  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.

   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   [*5]  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)(I) 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)(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, 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 the documentation submitted by Taxpayer A is
consistent with her assertion that her   [*6]  failure to accomplish a timely
rollover of Amount 1 was due to her confusion regarding her financial affairs
resulting from the recent death of her spouse and her ongoing mental condition.

   Therefore, pursuant to section 408(d)(3)(I) of the Code, the Service hereby
waives the 60-day rollover requirement with respect to the distribution of
Amount 1 from IRA X. Pursuant to this ruling letter, Taxpayer A is granted a
period of 60 days measured from the date of the issuance of this letter ruling
to make a rollover contribution of an amount equal to Amount 1 to an IRA (or
IRAs) described in section 408(a) of the Code. Provided all other requirements
of section 408(d)(3) of the Code, except the 60-day requirement, are met with
respect to such IRA contribution, the contribution will be considered a rollover
contribution within the meaning of section 408(d)(3) 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 ruling does not authorize the rollover of amounts that are required to
be distributed by sections 408(a)(6) and 401(a)(9) of the Code.

   This   [*7]  letter is directed only to the taxpayer who requested it.
Section 6110(k)(3) of the Code provides that it may not be used or cited as
precedent.

   Pursuant to a power of attorney on file with this office, a copy of this
letter ruling is being sent to your authorized representative.

   If you wish to inquire about this ruling, please contact Mr. * * *
(Government Identification Number * * *) by phone at * * * or by fax at * * *.
Please address all correspondence to SE:T:EP:RA:T1.

   Sincerely,

   Carlton A. Watkins, Manager
Employee Plans Technical Group 1