- 10 -
Transfer Refund does not constitute a qualified total
distribution. See Wittstadt v. Commissioner, T.C. Memo. 1995-
492; Humberson v. Commissioner, T.C. Memo. 1995-470; Pumphrey v.
Commissioner, T.C. Memo. 1995-469; Adler v. Commissioner, T.C.
Memo. 1995-148; Dorsey v. Commissioner, T.C. Memo. 1995-97; Brown
v. Commissioner, T.C. Memo. 1995-93; Hylton v. Commissioner, T.C.
Memo. 1995-27; Hoppe v. Commissioner, T.C. Memo. 1994-635;
Hamilton v. Commissioner, T.C. Memo. 1994-633; Sites v. United
States, 75 AFTR 2d 95-2503 at 95-2504, 95-1 USTC par. 50,280 (D.
Md. 1995); see also Conway v. United States, supra; cf. Wheeler
v. Commissioner, T.C. Memo. 1993-561.6 We observe that the
definition of "qualified total distribution" set forth in section
402(a)(5)(E)(i)(II) incorporates the definition of "lump sum
distribution" set forth in section 402(e)(4)(A) and that the
latter definition includes concepts such as "balance to the
credit" and "on account of the employee's separation from the
service", which the foregoing cases address and resolve in the
Commissioner's favor.
6 We note that certain of the foregoing cases involve transfer refunds
arising from the taxpayer's transfer from the Maryland State Employees'
Retirement System to the Maryland State Employees' Pension System. The plan
provisions of the Maryland State Employees' Retirement System and the Maryland
State Employees' Pension System are set forth in secs. 1 through 80 and secs.
111 through 129, respectively, of Art. 73B of the Ann. Code of Md. The plan
provisions of the Maryland State Teachers' Retirement System and the Maryland
State Teachers' Pension System are set forth in secs. 81 through 104 and secs.
140 through 155, respectively, of Art. 73B of the Ann. Code of Md. The secs.
governing the foregoing two Retirement Systems contain virtually identical
provisions authorizing distributions to employees and teachers who choose to
transfer from a retirement system to a pension system. See Md. Ann. Code,
art. 73B, secs. 11B(5), 14(1)(g) (1988), regarding the Maryland State
Employees' Retirement System; Md. Ann. Code, art. 73B, sec. 89(1)(e) (1988),
regarding the Maryland State Teachers' Retirement System.
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