In a recent ruling letter, the IRS allowed a waiver of 60-day rollover requirement when taxpayer had a mental condition that impaired his ability to make sound financial decision.
Taxpayer received a distribution from individual retirement account (IRA), and failed to accomplish rollover within the 60-day period because he was in a bad mental condition followed by his wife’s death. Taxpayer argued that he could not make a sound financial judgment during that time period and he did not use the amount for any other purposes.
Citing section 408(d)(3) of the Internal Revenue Code, the IRS granted an extension of 60 days to contribute to IRA, acknowledging that taxpayer was indeed in a mental condition that prevented him from making a sound financial decision.

See PLR-201444046 (Aug. 4, 2014).

Posted by Jin Keol Park, Associate Editor, Wealth Strategies Journal