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Petitioners contend that the stock certificate did not
properly become invested in the IRA account until October 2,
1998, when Mr. Kopty executed the Norwest form entitled “Self-
Directed IRA Rollover/Direct Rollover Documentation”.
Petitioners point out that October 2, 1998, is 79 days after Mr.
Kopty had constructively “received” the certificate on July 15,
1998, and is beyond the 60-day period specified in section
402(c)(3) during which a distributee is required to transfer the
property distributed to an eligible retirement plan. Petitioners
further contend that the form executed on October 2, 1998, was
not properly completed and did not serve to transfer the stock to
Norwest. In effect, petitioners’ position is that Mr. Kopty did
not elect to treat the contribution of his J.D. Edwards & Co.
stock certificate as a rollover contribution until October 2,
1998, when he executed the Norwest form entitled “Self-Directed
IRA Rollover/Direct Rollover Documentation”.
According to the regulations promulgated under section 402,
an election to treat a contribution to an IRA as a rollover
contribution is made simply by designating the contribution as a
rollover contribution. The regulations promulgated under section
402 provide as follows:
In order for a contribution of an eligible
rollover distribution to an individual retirement plan
to constitute a rollover and, thus, to qualify for
current exclusion from gross income, a distributee
must elect, at the time the contribution is made, to
treat the contribution as a rollover contribution. An
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Last modified: March 27, 2008