Winthrop B. and Sally L. Orgera - Page 5

                                        - 5 -                                         
          been received from Western, and, accordingly, it became the                 
          bank's understanding that the IRA accounts were not to have been            
          opened.  By a letter dated July 19, 1991, the Kansas bank advised           
          petitioner of the return of a $27 custodial fee, which had been             
          paid by the credit union with respect to petitioner's IRA                   
          account.  The fee was returned because the IRA had not been                 
          funded and the IRA accounts had been closed.                                
                                       OPINION                                        
               Section 402(a)(1)3 provides the general rule that amounts              
          distributed by a qualified plan are taxable in the year of                  
          distribution in accordance with the provisions of section 72.               
          Section 402(a)(5) provides that taxation of a current                       
          distribution may be deferred if it is rolled over into an                   
          eligible retirement plan within 60 days of the distribution.                
          Petitioners bear the burden of proving that respondent's                    
          determination is in error.  Rule 142(a); Welch v. Helvering, 290            
          U.S. 111 (1933).  Accordingly, petitioners must show that the               
          cash distribution in question was rolled over into an eligible              
          retirement plan within 60 days.                                             
               Petitioner concedes that the $7,005.77 of the Plan                     
          distribution that was not deposited and the $50,000 that was                


               3 Sec. 402 as used in this opinion refers to the section in            
          effect for distributions made prior to Dec. 31, 1992.  The                  
          Unemployment Compensation Amendments of 1992, Pub. L. 102-318,              
          sec. 521(a), 106 Stat. 290, 300, restructured and reconfigured              
          sec. 402 for years after the 1992 calendar year.                            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011