Harold L. and Gladys M. Humberson - Page 15

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          appreciate petitioners' frustration because, although these                 
          amounts have not differed dramatically, they have not remained              
          constant throughout the administrative and pretrial stages of               
          this case.  Nevertheless, petitioners ultimately stipulated to              
          the relevant amounts, and our findings are based on the parties'            
               In view of the foregoing, we hold that the Transfer Refund             
          did not constitute a lump-sum distribution within the meaning of            
          section 402(e)(4)(A) because petitioner did not receive the                 
          "balance to the credit" when he transferred from the Retirement             

          14 See supra note 5 and the associated text.  We observe                    
          that the Court offered to reopen the record after trial in order            
          to accommodate a revised stipulation.  However, nothing was ever            
          forthcoming from the parties.                                               
               Of perhaps even greater significance is the fact that the              
          decision to be entered herein will reflect the deficiency as                
          determined by respondent and not an increased deficiency.  See              
          infra note 17.  In this regard we observe that the deficiency as            
          determined by respondent effectively credits petitioner with                
          previously taxed contributions in the amount of $22,586.75,                 
          rather than the $21,765.02 amount that was stipulated by the                
          parties.  As shown in the following table, the taxable amount of            
          the Transfer Refund, based on the amount of petitioner's                    
          previously taxed contributions as credited in the notice of                 
          deficiency, is less than it would be if the stipulated amount               
          were used:                                                                  
          Taxable Amount of Transfer Refund          Taxable Amount of Transfer Refund
          Per Notice of Deficiency                        Per Stipulation             
          Transfer Refund$158,680.98          Transfer Refund       $158,680.98       
          less: Previously                           less: Previously                 
          taxed contributions  -22,586.75            taxed contributions  -21,765.02  
          Taxable Amount        $136,094.23          Taxable Amount       1$136,915.96
          1  This amount consists of $136,681.18 of earnings on petitioner's previously taxed
          contributions and $234.78 of employer "pick-up" contributions.  See supra note 5 and
          the associated text.                                                        

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