Joe M. and Patricia M. Brown - Page 27

                                       - 27 -                                         
          219(g)), exclusive of amounts properly rolled over tax free.                
          Sec. 4973(b).                                                               
               In view of our conclusion, supra, that petitioner's Transfer           
          Refund qualifies for tax-free rollover treatment in 1989 under              
          section 402(a)(5)(D), petitioner is not liable for the excise tax           
          under section 4973(a).                                                      
               Section 4980A                                                          
               Finally, we turn to section 4980A.  Section 4980A(a) imposes           
          a 15-percent excise tax on excess distributions from qualified              
          retirement plans.  As relevant herein, an "excess distribution"             
          is defined as the aggregate amount of the retirement                        
          distributions with respect to any individual during any calendar            
          year to the extent that such amount exceeds $150,000.  Sec.                 
          4980A(c)(1).  However, pursuant to section 4980A(c)(2)(D), a                
          retirement distribution is not an "excess distribution" if the              
          retirement distribution is not included in gross income by reason           
          of a rollover contribution.                                                 
               In view of our conclusion, supra, that petitioner's Transfer           
          Refund qualifies for tax-free rollover treatment in 1989 under              
          section 402(a)(5)(D), petitioner is not liable for the excise tax           
          imposed by section 4980A for 1989.                                          
               For 1990, petitioner withdrew an amount in excess of                   
          $150,000 from his IRA with First National.  Accordingly,                    








Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011