- 2 - Respondent determined a deficiency in petitioner's Federal income tax of $2,901 for 1998. The issues for decision are: (1) Whether petitioner may deduct the Federal income tax withheld from a distribution from an Individual Retirement Account (IRA), and (2) whether petitioner is liable for the 10-percent additional tax on an early distribution from a qualified retirement plan. The stipulated facts and exhibits received into evidence are incorporated herein by reference. At the time the petition in this case was filed, petitioner resided in Jennings, Oklahoma. Background In 1994, petitioner rolled over an amount from his 401(k) profit sharing plan at Moore Corporation into an IRA, a qualified retirement plan, at Payne County Bank (PCB) in Perkins, Oklahoma. On November 14, 1997, the District Court In And For Lincoln County, State of Oklahoma, issued a Qualified Domestic Relations Order (QDRO) in the case of Alvetta J. Mills v. Larry J. Mills. The QDRO ordered PCB to segregate for the benefit of Alvetta Mills, the alternate payee, the sum of $17,745 along with the interest accruing between November 14, 1997, until the date of distribution. Petitioner signed on January 10, 1998, an "IRA Distribution Form", containing several sections, including: (1) "IRA Owner Information"; (2) "Distribution Reason"; (3) "PaymentPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011