- 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).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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