4
or about October 31, 1990, petitioner withdrew the entire balance
of his account ($16,831.81) and closed his Fidelity IRA. On
October 31, 1990, petitioner deposited the funds withdrawn into a
personal checking account with City National Bank. At the time
of the withdrawal, petitioner was 41 years old.
Petitioner argues that the amount withdrawn from the
Fidelity IRA is not currently taxable because Fidelity withheld
the tax prior to disbursing the funds. In support thereof,
petitioner points to the difference between the amount deposited
in the IRA ($18,446.72) and the balance of the account at the
time of the withdrawal ($16,831.81). Petitioner claims that this
amount ($1,614.91) represents tax withheld. Petitioner offers no
documentation to support his argument.
Under section 402(a)(1), a distribution from a qualified
employee's trust is taxable to the distributee in the year of
distribution. Section 402(a)(5)(A) provides an exception to the
general rule for certain "rollovers" by the employee; namely,
where the balance to the credit of the employee in a qualified
trust is paid to him, and the employee transfers any portion of
the distribution to "an eligible retirement plan" within 60 days
of receipt, then the amount so distributed shall not be included
in gross income. Sec. 402(a)(5)(A), (C).
Respondent does not dispute that the deposit of petitioner's
lump-sum distribution into the Fidelity IRA qualifies as a tax-
free rollover. However, respondent contends that petitioner's
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