David Edward Neumeister - Page 6

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            opportunity to participate in, and indeed did participate in,                              
            such an employment-based, tax-advantaged plan.  Given these                                
            facts, the distinction that petitioner makes regarding his                                 
            employer’s being the Lansing school district rather than the                               
            State of Michigan is inconsequential.  The fact remains that                               
            petitioner was an active participant in an employment-based, tax-                          
            advantaged retirement plan provided by the State.  We hold                                 
            therefore that petitioner actively participated in a plan                                  
            established by a State or a political subdivision thereof for its                          
            employees, see sec. 219(g)(5)(A)(iii), and is not entitled to a                            
            tax deduction for his contribution.                                                        
                  Alternatively, the record establishes that the MPSERS is a                           
            plan described in section 401(a) and a trust exempt from tax                               
            under section 501(a).  Thus, petitioner is not entitled to an IRA                          
            deduction because he was an active participant in a plan                                   
            described in section 219(g)(5)(A)(i).                                                      
            To reflect our disposition of the disputed issue, as well as                               
            petitioner's concessions,                                                                  

                                                      Decision will be entered                         
                                                for respondent.                                        

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Last modified: May 25, 2011