Private letter ruling needed?
My friend took 300K from IRA(he is over 59 1/2) for a bridge loan to build a house. He was going to return it within 60 days. He passed away and the 60 days is not up. His IRA company(one of the biggies) will not let the wife “roll” the money back into his IRA because they can’t accept money into a dead person’s account. This is looking ugly because it would be 300K in income taxable at the highest rate. Anyone have ideas?
Permalink Submitted by Bruce Steiner on Fri, 2008-02-08 19:53
The IRS allowed the executor to complete the rollover in PLR 20050250, but not in other rulings such as PLR 200415011. I think the key is whether she can show that he would have rolled it over but for his death.
We’ve gotten about a half dozen rulings waiving the 60-day deadline, but each one turns on its own facts, and whether the facts are consistent with in Rev. Proc. 2003-16.
Bruce Steiner, attorney
NYC
also admitted in NJ and FL