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(including the 1992 distribution) are governed by section
402(a)(1). That section provides generally that “the amount
actually distributed to any distributee * * * shall be taxable to
him, in the year in which so distributed, under section 72
(relating to annuities).” There is an exception to that rule of
taxability for certain “rollover amounts”. Section 402(a)(5)(A)
provides:
(A) General rule.--If--
(i) any portion of the balance to the credit
of an employee in a qualified trust is paid to
him,
(ii) the employee transfers any portion of
the property he receives in such distribution to
an eligible retirement plan, and
(iii) in the case of a distribution of
property other than money, the amount so
transferred consists of the property distributed,
then such distribution (to the extent so transferred)
shall not be includible in gross income for the taxable
year in which paid.
The transfer, however, must be made within 60 days of receipt.
Sec. 402(a)(5)(C) (“Subparagraph (A) shall not apply to any
transfer of a distribution made after the 60th day following the
day on which the employee received the property distributed.”).
That would seem to be the end of it for petitioner with
respect to the 1992 distribution, which was not transferred to an
eligible retirement plan within the 60-day period prescribed by
statute. There is another restriction on rollovers, however,
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Last modified: May 25, 2011