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Rules 180, 181, and 183.1 The Court agrees with and adopts the
Opinion of the Special Trial Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
ARMEN, Special Trial Judge: For the taxable year 1989,
respondent determined a deficiency in petitioners' Federal income
tax, as well as deficiencies in petitioners' Federal excise taxes
under sections 4973 and 4980A,2 in the total amount of
$89,740.84. The deficiency in income tax includes the 10-percent
additional tax imposed by section 72(t) on early distributions
from qualified retirement plans.
The pivotal issue for decision is whether the distribution
received by petitioner Glenn L. Wittstadt in 1989 from the
Maryland State Teachers' Retirement System qualifies for tax-free
rollover treatment under section 402(a)(5). The resolution of
this issue turns on whether the distribution constitutes a
"partial distribution" as defined by section 402(a)(5)(D)(i).
If we conclude that the distribution in question does not
qualify for tax-free rollover treatment, then we must also
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
2 Sec. 4973 imposes a 6-percent excise tax on excess
contributions to individual retirement accounts. Sec. 4980A
imposes a 15-percent excise tax on excess distributions from
qualified retirement plans. Both of these taxes are included
within ch. 43 of the Internal Revenue Code. They are therefore
subject to the deficiency procedures set forth in subch. B of ch.
63 of the Internal Revenue Code. See sec. 6211(a).
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