- 7 - collection action by respondent totally unrelated to the year at issue. Such conduct is not acceptable. Respondent, therefore, is sustained on this issue. The second issue is whether a $500 distribution received by petitioner from an IRA is includable in gross income. Section 402(a) provides that "any amount actually distributed to any distributee by any employees' trust described in section 401(a) * * * shall be taxable to the distributee, in the taxable year of the distributee in which distributed, under section 72 (relating to annuities)." However, an exception to this general rule is found in section 402(c)(1), which provides: (1) Exclusion from income.--If.-- (A) any portion of the balance to the credit of an employee in a qualified trust is paid to the employee in an eligible rollover distribution, (B) the distributee transfers any portion of the property received in such distribution to an eligible retirement plan, and (C) 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. Further, section 402(c)(3) provides that such a rollover exclusion shall not apply "to any transfer of a distribution made after the 60th day following the day on which the distributeePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011