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contract described in section 403(b) and any
earnings on such rollover, and
(III) the entire amount thereof is
paid into another annuity contract described
in section 403(b) (for the benefit of such
individual) not later than the 60th day after
he receives the payment or distribution.
Petitioners admit that they did not satisfy any of these
requirements to properly roll over Mr. Anderson’s IRA funds into
another IRA.5 Instead, petitioners argue that the failure to
satisfy the requirements of section 408(d)(3)(A) were caused by
errors committed by Arlington, which should not be held against
petitioners. To support this argument that we should ignore the
failure to satisfy the literal requirements of the Code,
petitioners rely primarily upon Wood v. Commissioner, 93 T.C. 114
(1989).
In Wood, the taxpayer consulted Merrill Lynch to effectuate
a rollover of a distribution from his IRA. Id. at 115. The
taxpayer signed the requisite documents to establish the IRA,
Merrill Lynch opened a valid IRA account for the taxpayer, and
Merrill Lynch recorded the deposit of the cash contribution as a
deposit into the IRA account. Id. at 116-117, 120. By virtue of
a bookkeeping error on the part of Merrill Lynch, Merrill Lynch
5 The Economic Growth and Tax Relief Reconciliation Act of
2001, Pub. L. 107-16, sec. 644(b), 115 Stat. 123, added sec.
408(d)(3)(I) to the Code effective for distributions after Dec.
31, 2001. That section allows the Commissioner to waive the 60-
day deadline in the name of equity or good conscience. By reason
of its effective date, that provision is inapplicable here.
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