Steven Rudolph Kaldi - Page 9

                                        - 8 -                                         
          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.             

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next 

Last modified: November 10, 2007