- 5 -
into an individual retirement account or individual retirement
annuity * * * for the benefit of such individual not later than
the 60th day after * * * [the individual] receives the payment or
distribution". Sec. 408(d)(3)(A)(i). If any amount would meet
these requirements except that the entire amount was not rolled
over into the new IRA, the portion rolled over within the time
limit will be considered as a rollover contribution. Sec.
408(d)(3)(D).
As with IRA distributions, amounts distributed out of Keogh
accounts generally are taxable in the year received under section
72. Sec. 402(a). However, to the extent the distribution meets
the following requirements, such distribution is not includable
in gross income:
(A) any portion of the balance to the credit of an
employee in a qualified trust is paid to the employee
in an eligible rollover distribution,
(B) the distributee transfers any portion of the
property received in such distribution to an eligible
retirement plan, and
(C) in the case of a distribution of property
other than money, the amount so transferred consists of
the property distributed, [Sec. 402(c)(1).]
Respondent concedes that petitioner's IRA and Keogh
distributions were eligible to be rolled over and that the Smith
Barney IRA was an eligible plan.
It is clear from the above provisions that to the extent
that petitioner did not reinvest the IRA and Keogh distributions
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011