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disability meets the standard set forth in section 72(m)(7) and
section 1.72-17A(f)(2) and (4), Income Tax Regs., we find that no
portion of the $45,000 distributed to petitioner would be
exempted from the additional early withdrawal tax on the basis of
the disability exception.
2. Rollovers
Petitioner argues that $25,000 of the $45,000 was rolled
over into another IRA and should be exempt from both inclusion in
his gross income for 2002 and from the additional early
withdrawal tax. “Rollover contributions” are not includable in
gross income. Sec. 408(d)(3); Lemishow v. Commissioner, 110 T.C.
110, 112 (1998), supplemented 110 T.C. 346 (1998). Further,
rollover contributions are not subject to the additional early
withdrawal tax. Sec. 408(d)(3).
To qualify as a rollover contribution, a payment or
distribution from an individual retirement plan must be rolled
over into another IRA or other qualified plan within 60 days of
the payment or distribution. Sec. 408(d)(3); Schoof v.
Commissioner, 110 T.C. 1, 7 (1998); Metcalf v. Commissioner, T.C.
Memo. 2002-123, affd. 62 Fed. Appx. 811 (9th Cir. 2003); sec.
1.408-4(b)(1) and (2), Income Tax Regs. “A fundamental
requirement for a rollover contribution under section 408(d)(3) *
* * is that funds actually be rolled over or transferred into an
IRA or other qualified plan.” Crow v. Commissioner, T.C. Memo.
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