- 7 - $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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011