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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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Last modified: May 25, 2011