Harold E. Emmons and Anna Mae Emmons - Page 17

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          the Court stated that "'the balance to the credit of an employee'           
          was intended to include all sums payable to the employee and that           
          there should be no separation of accounts for this purpose."                
               In view of the foregoing, we hold that the Transfer Refund             
          did not constitute a lump sum distribution within the meaning of            
          section 402(e)(4)(A) because petitioner did not receive the                 
          "balance to the credit" when she transferred from the Retirement            
          System to the Pension System.  Accordingly, petitioners are not             
          entitled to the increased threshold amount; i.e. $750,000, set              
          forth in section 4980A(c)(4) in determining the amount of                   
          petitioner's excess distributions for purposes of the excise tax            
          under section 4980A.                                                        
               We now turn to petitioners' alternative argument.                      
          Petitioners contend that the Retirement System is not a                     
          "qualified employer plan" under section 4980A(e)(2) because it              
          provides for the distribution of employee contributions and                 
          earnings thereon prior to a participant's retirement.  Thus,                
          petitioners argue that there were no "retirement distributions"             
          under section 4980A(e)(1) and therefore no "excess distributions"           
          for purposes of section 4980A(a).                                           
               We have previously considered and rejected petitioners'                
          alternative contention in Montgomery v. Commissioner, T.C. Memo.            
          1996-263.  We see no need to revisit the issue.  Therefore, for             
          the reasons stated in Montgomery v. Commissioner, supra, we hold            






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