Glen L. Wittstadt, Jr. and Lynne M. Wittstadt - Page 5

                                        - 5 -                                         
               If petitioner had not transferred to the Pension System but            
          rather had remained a member of the Retirement System, he would             
          have been entitled to retire and receive a normal service                   
          retirement benefit, including a regular monthly annuity.  He                
          would not, however, have been entitled to receive a transfer                
          refund because a transfer refund is only payable to those who               
          elect to transfer from the Retirement System to the Pension                 
          System.                                                                     
               As a member of the Pension System, petitioner receives a               
          retirement benefit based upon his salary and his creditable years           
          of service, specifically including those years of creditable                
          service recognized under the Retirement System.  However, due to            
          petitioner's receipt of the Transfer Refund, petitioner's monthly           
          annuity is less than the monthly annuity he would have received             
          if he had not transferred to the Pension System but had retired             
          under the Retirement System.                                                
               The Transfer Refund was mailed, in the form of a check, to             
          T. Rowe Price, a mutual fund in Baltimore, Maryland, and                    
          deposited into an IRA account in petitioner's name in accord with           
          a Limited Power of Attorney for Bank to Accept Deposit of Refund            
          Check.                                                                      
               On their Federal income tax return for 1989, petitioners did           
          not report any part of the Transfer Refund as income.  In the               

          6(...continued)                                                             
          deficiency, however, this total is shown as $184,787.54.                    




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011