- 11 -
for purposes of section 4980A is whether the Transfer Refund
constituted a "lump sum distribution" within the meaning of
section 402(e)(4)(A). Petitioners contend: (1) The Transfer
Refund was a lump sum distribution, (2) petitioner was entitled
to and did elect forward averaging under section 402(e),10 and
(3) there was no excess distribution because petitioner's lump
sum distribution and annuity payments did not exceed $750,000.
Respondent contends that the Transfer Refund was not a lump sum
distribution, and that there was an excess distribution to the
extent petitioner's retirement distributions exceeded $150,000.
A "lump sum distribution" is defined in section 402(e)(4)(A)
as follows:
(A) Lump sum distribution.--For purposes of this
section * * * , the term "lump sum distribution" means
the distribution or payment within one taxable year of
the recipient of the balance to the credit of an
employee which becomes payable to the recipient--
(i) on account of the employee's death,
(ii) after the employee attains age 591/2,
(iii) on account of the employee's separation from the
service, or
(iv) after the employee has become disabled * * *
from a trust which forms a part of a plan described in
10 We note that petitioners did not elect 10-year forward
averaging under sec. 402(e) on their Form 1040 for 1991.
Although petitioners contend on brief that they elected forward
averaging on an amended return (Form 1040X), the record contains
no such evidence. Rule 143(b). See 2 Bittker & Lokken, Federal
Taxation of Income, Estates and Gifts, par. 61.13.7, at 61-171
(2d ed. 1990); 370-2d Tax Mgmt (BNA), Qualified Plans -- Taxation
of Distributions, VII, C, 1, at A-107 (2d ed. June 27, 1994).
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