- 9 - Petitioner failed to make a section 402(a)(5)(A) rollover of the $4,822 distribution, either to an IRA or any other type of eligible retirement plan. Furthermore, merely being a participant in another qualified retirement plan does not, in and of itself, constitute a rollover into such plan of a distribution from a separate qualified retirement plan. Consequently, the Court holds that the $4,822 distribution from the retirement plan at the convention center was not "transferred" to an "eligible retirement plan" as required by section 402(a)(5)(A) in order for such distribution to be excluded from petitioner's gross income. Finally, section 72(a) contains the general rule for annuities, and section 72(e) contains the rule for payments that are not received as an annuity (i.e., petitioner's $4,822 distribution). Under section 72(e)(5)(A), amounts received from qualified plans under section 401(a) are included in gross income only to the extent that the amounts received exceed the distributee's "investment in the contract". Section 72(e)(6) defines generally "investment in the contract" as being the consideration paid for the contract less amounts received under the contract before the distribution that are excludable from gross income. Thus, any nondeductible contributions a taxpayer has made to a retirement plan are excluded from gross income when such distributions are made. Petitioner presented no evidence to establish that he made any nondeductible contributions to thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011