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distribution, and $100,502.21 of the 1990 pension distribution
was not entitled to tax-deferred rollover treatment.
On her 1990 Federal income tax return, decedent reported
that the entire amount of the $725,502 pension distribution,
including the amount deposited with GNA, was nontaxable because
it was timely rolled over. In a statement attached to the
return, decedent reported that she received a distribution of
$725,502 from “Golden State” and rolled over the entire amount
into an account with “Merrill Lynch”.
In 1993, decedent received two distributions from GNA that
totaled $99,632 (GNA distribution). GNA issued to respondent a
Form 1099-R (Distributions From Pensions, Annuities, Retirement
or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) that
reported a gross distribution to decedent in the amount of
$101,656 and a taxable distribution of $99,632. On her 1993
income tax return, decedent did not report the GNA distribution
as taxable income. The period for assessment of an income tax
deficiency for taxable year 1990 has expired.
OPINION
In general, distributions from qualified retirement plans
are included in the income of the distributee in the year of
distribution. Secs. 72, 402. An exception exists if the
distribution is rolled over into an eligible retirement plan
within 60 days of receipt of the distribution. Sec.
402(a)(5)(C).
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