- 7 -
an installment of a lump-sum distribution, which lump-sum
distribution will not be completed until Unisys completes its
payments to him on account of the contract amounts. Only then,
petitioner concludes, will the 60-day rollover period begin.
4. Analysis
a. Partial Distribution
Apparently, petitioner recognizes that it would be futile
for him to argue that the 1992 distribution was a “partial
distribution”, within the meaning of section 402(a)(5)(E)(v).
Nothing in the statute lends itself to the argument that,
treating the 1992 distribution as one or more partial
distributions, the 60-day rollover period has not expired.
b. “[B]alance to the credit of an employee”
As stated, section 402(e)(4)(A) incorporates into the
definition of a lump-sum distribution the requirement that the
distribution or payment constitute the balance to the credit of
an employee which becomes payable on account of his separation
from service. The Commissioner has interpreted the section
402(e)(4)(A) balance-to-the-credit-of-an-employee requirement
(the balance payable requirement) as being satisfied when the
recipient receives all funds credited to the employee’s account
except for the employee’s possible share of certain court
impounded funds. Rev. Rul. 83-57, 1983-1 C.B. 92. The
Commissioner’s position in that ruling is not before the Court,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011