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Guardian IRA, as petitioner's investment in the IRA contract.
Cf. Wimbish v. United States, 267 F. Supp. 597 (W.D. Ky. 1967).
Amounts Allocated to Investment and Income
Generally, for distributions of amounts not received as
annuities, before the annuity starting date, the amount of a
distribution allocable to the investment in the contract and thus
distributed tax free, is the portion of the amount received that
bears the same ratio to the amount received as the investment in
the contract bears to the account balance. Sec. 72(e)(8)(A) and
(B).
The operation of section 72(e)(8) is, however, modified in
the case of an IRA by section 408(d)(2). The latter section
requires for section 72 purposes that we treat all IRA's as one,
all distributions in 1992 as one distribution, and that we
compute the value, income, and investment in the contract as of
the end of 1992; the value of the contract includes the amount of
any distributions during the calendar year (flush language
following section 408(d)(2)(C)).
Petitioner has failed to provide any evidence as to the
source, year, or amount of the contributions to the Prudential
account. Without such evidence we cannot find that any amount
distributed to petitioner from the Prudential account is a return
of his investment in the account.
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Last modified: May 25, 2011