- 11 -
"balance to the credit" when he 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.
Because petitioner received a retirement distribution under
section 4980A(e)(1) in the amount of $456,611, we sustain
respondent's determination that petitioner received an excess
retirement distribution in the amount of $306,611 ($456,611 less
$150,000) and petitioner is therefore liable for the 15-percent
excise tax under section 4980A.
We have considered petitioners' remaining arguments
regarding section 4980A and find them unpersuasive.
Finally, we reject petitioners' claim of an overpayment of
income tax because the Transfer Refund does not qualify for 10-
year forward averaging under section 402(e)(1). The law is clear
that if a distribution is not a "lump sum distribution" within
the meaning of section 402(e)(4)(A), then such distribution does
not qualify for forward averaging under section 402(e)(1). E.g.,
Clark v. Commissioner, 101 T.C. 215, 218-219 (1993). We have
already held, supra at p. 10, that the Transfer Refund did not
constitute a lump sum distribution because petitioner did not
receive the "balance to the credit" when he transferred from the
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