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distribution" to which a forward averaging election under section
402(e)(4)(B) applies. Thus, as relevant herein, if the aggregate
retirement distributions with respect to any individual include a
lump sum distribution to which an election under section
402(e)(4)(B) applies, an "excess distribution" exists to the
extent that the retirement distributions exceed $750,000; i.e.,
five times the amount of the limitation otherwise provided by
section 4980A(c)(1). Sec. 4980A(c)(4).
Retirement distributions are the amount distributed to an
individual under an individual retirement plan or any "qualified
employer plan" with respect to which such individual is or was
the employee. Sec. 4980A(e)(1). As relevant herein, section
4980A(e)(2) defines a qualified employer plan as "a plan
described in section 401(a) which includes a trust exempt from
tax under section 501(a)" and a plan which, at any time, has been
determined by the Commissioner to be such a plan.
Petitioners contend that the Retirement System does not
satisfy the definition of a qualified employer plan for two
primary reasons. First, petitioners argue that the term
"qualified employer plan" as used in section 4980A(e)(2) and
section 54.4981A-1T(a-3)(c)(2), Temporary Qualified Pension Plan
Excise Tax Regs., 52 Fed. Reg. 56750 (Dec. 10, 1987), does not
contemplate governmental plans such as the Retirement System.
Second, petitioners argue that the amendments made to the
Retirement System in 1984 violate various provisions of section
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