PRIVATE LETTER RULING 201015038:
A taxpayer we will call "Patrick" took a distribution from his IRA to cover
potential expenses from a business he was purchasing with his spouse.
"Patrick" was told that he would have until year-end to redeposit his IRA
"Patrick" closed the business purchase without using the IRA
distribution funds and was prepared to return them to his IRA within two
weeks. "Patrick" made several attempts to meet with a representative of
the Financial Institution, but the meeting continually was pushed back.
"Patrick" accomodated these rescheduling requests based on the initial
guidance provided by the Financial Institution. He finally met with a
representative eight days after the end of the 60-day period and was
shockingly (at least to him) told it was too late to return the funds.
After "Patrick" filed a claim, the custodian settled. Then "Patrick" filed
the PLR request which was granted by IRS and "Patrick" was given an
extension of time to complete the rollover.
IRA Technical Consultant Beverly Deveny's take:
Had "Patrick" needed to use the funds while they were out of the
account, it is unlikely that this Private Letter Ruling would have been
If the custodian had admitted their errors, the rollover could have been
accomplished without the necessity for a PLR under the automatic
extension provision of Rev. Proc. 2003-16.