- 3 -
into the IRA. A statement from Merrill Lynch for the period
ending October 31, 1998, however, clearly shows that the
distribution had been deposited into the CMA.
During 1998, petitioner had a savings account with Hibernia
National Bank. That account generated interest income of $117
that petitioner did not withdraw during the year.
Petitioner obtained extensions of time within which to file
his 1998 Federal income tax return to October 15, 1999. He did
not file his 1998 return until October 19, 1999. Petitioner did
not report income from the distribution from the retirement plan
or the $117 interest income from Hibernia National Bank.
Respondent determined that $27,389 of the retirement plan
distribution and the $117 interest income are includable in gross
income. Respondent also imposed an addition to tax under section
6651(a)(1) for not timely filing the 1998 tax return.
Discussion5
Retirement Plan Distribution
The taxable portion of a distribution from a retirement plan
under section 401(k) is generally taxable in the year of receipt.
See sec. 402(a)(1). Section 402(a)(5)(A) and (C), however,
provides:
5 The facts concerning the retirement plan distribution and
the unreported interest are not in dispute, and sec. 7491(a),
concerning the burden of proof with respect to factual issues, is
not pertinent to the resolution of these issues
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