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Section 408(d) generally sets forth the tax treatment of
distributions from IRA’s as follows:
SEC. 408(d) Tax Treatment of Distributions.-–
(1) In general.–-Except as otherwise provided in this
subsection, any amount paid or distributed out of an
individual retirement plan shall be included in gross income
by the payee or distributee, as the case may be, in the
manner provided under section 72.
We have held that the distributee or payee of a
distribution from an IRA is “the participant or beneficiary who,
under the plan, is entitled to receive the distribution.” Bunney
v. Commissioner, 114 T.C. 259, 262 (2000); see also Darby v.
Commissioner, 97 T.C. 51, 58 (1991). In noncommunity property
jurisdictions, since Mr. Morris was entitled to and did receive
the distributions, those distributions would be taxable to him.
Sec. 408(d)(1). The question then is whether the Louisiana
community property regime dictates a different result. Section
408(g) provides that “This section shall be applied without
regard to any community property laws.” We held in Bunney that
by operation of section 408(g), in a community property
jurisdiction the spouse of a distributee, who did not receive the
distribution from the IRA, is not treated as a distributee
despite whatever his or her community property interest in the
IRA may have been. Bunney v. Commissioner, supra at 263.
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Last modified: May 25, 2011