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the Transfer Refund constitutes a "retirement distribution"
within the meaning of section 4980A(e)(1)(A). Cf. sec.
4980A(c)(2)(C).
In view of the foregoing, it necessarily follows that the
taxable portion of the Transfer Refund that exceeds $150,000;
i.e., $327,655.59 less $150,000, or $177,655.59, constitutes an
"excess distribution" within the meaning of section
4980A(c)(1)(A). Accordingly, petitioner is liable for the 15-
percent excise tax on excess distributions under section
4980A(a). See Emmons v. Commissioner, T.C. Memo. 1996-265;
Powell v. Commissioner, T.C. Memo. 1996-264; Montgomery v.
Commissioner, T.C. Memo. 1996-263; see also O'Connor v.
Commissioner, T.C. Memo. 1994-170 (regarding section 4974).
B. Petitioner's Contention
Notwithstanding the foregoing, petitioner argues that she is
not liable for the excise tax under section 4980A(a) because the
Transfer Refund was not paid to her on account of her retirement
but rather as an inducement for her to transfer from the
Retirement System to the Pension System. In this regard,
petitioner relies heavily on the fact that she remained an active
employee of the State of Maryland at the time that she received
the Transfer Refund and continuously thereafter. Thus, in
petitioner's view, the Transfer Refund did not constitute a
retirement distribution because "petitioner has not retired from
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