Elaine S. Bennett - Page 7

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          $150,000.9  Sec. 4980A(c)(1)(A).                                            
               As relevant herein and with respect to an individual, the              
          term "retirement distribution" is defined as the amount                     
          distributed under a qualified employer plan with respect to which           
          such individual is or was the employee.  Sec. 4980A(e)(1)(A).               
          Again as relevant herein, a "qualified employer plan" is defined            
          as any plan described in section 401(a) that includes a trust               
          exempt from tax under section 501(a).  Sec. 4980A(e)(2)(A).                 
               As previously stated, both the Retirement System and the               
          Pension System are qualified defined benefit plans under section            
          401(a), and the trust maintained as part of each plan is exempt             
          from tax under section 501(a).  Accordingly, the Retirement                 
          System and the Pension System constitute "qualified employer                
          plans" within the meaning of section 4980A(e)(2)(A).                        
               Also as previously stated, petitioner received the Transfer            
          Refund from the Retirement System as a result of her election to            
          transfer to the Pension System and in her capacity as an employee           
          of the State of Maryland.  Accordingly, the taxable portion of              


          9         Sec. 4980A(c)(2) serves to exclude various                        
          distributions from the aggregate amount of an individual's                  
          retirement distributions.  Thus, for example, sec. 4980A(c)(2)(C)           
          excludes a distribution that is attributable to after-tax                   
          employee contributions.  However, because respondent determined             
          that only the taxable portion of the Transfer Refund constitutes            
          a retirement distribution, the exclusion authorized by sec.                 
          4980A(c)(2)(C) is not applicable to the present case, nor are any           
          of the other exclusions authorized by sec. 4980A(c)(2) applicable           
          herein.                                                                     




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