- 6 -
($480,414 received less $377,895 in stock, or $102,519), those
portions are taxable, and we so hold. Whether the portions of
the IRA and Keogh distributions used to purchase the stock are
excludable from income turns on whether the respective rollover
provisions of sections 408(d)(3) and 402(c) require, since the
distributions consisted of money, that petitioner transfer money
to the Smith Barney IRA.
Both rollover provisions were enacted as part of the
Employee Retirement Income Security Act of 1974, Pub. L. 93-406,
sec. 2002(b), (g)(5), 88 Stat. 829, 959-964, 968-969.2 The
purpose of allowing a tax-free rollover from a retirement plan to
an IRA was to facilitate portability of pensions. Conf. Rept.
93-1280 (1974), 1974-3 C.B. 415, 502; H. Rept. 93-807 (1974),
1974-3 C.B. (Supp.) 236, 265. The purpose of the IRA-to-IRA
transfers was to permit flexibility with respect to the
investment of an IRA. H. Rept. 93-807, supra, 1974-3 C.B.
(Supp.) at 374; S. Rept. 93-383 (1973), 1974-3 C.B. (Supp.) 80,
214. With respect to rollovers, the legislative history
repeatedly speaks in terms of "this same money or property" and
"the same amount of money (or the same property)", both for
distributions from an IRA and from a qualified plan. H. Rept.
93-807, supra, 1974-3 C.B. (Supp.) at 374-375; Conf. Rept. 93-
2 These provisions enacted sec. 402(a)(5), which is the
predecessor of sec. 402(c).
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011