Norma A. Cohen - Page 3

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          Norman’s Dreyfus IRA (Norman’s IRA) “shall be forthwith divided             
          equally” between petitioner and Norman.                                     
               In July of 1999, petitioner opened in her name a Dreyfus               
          IRA.  On the application for her Dreyfus IRA (petitioner’s IRA),            
          petitioner indicated that her IRA would be funded by a transfer             
          of $60,000 from Norman’s IRA.                                               
               On July 23, 1999, Norman mailed to Dreyfus a letter,                   
          enclosing a copy of the above court order, directing Dreyfus to             
          transfer $60,000 from his IRA into petitioner’s IRA.  In the                
          letter to Dreyfus, Norman indicated that the request to transfer            
          the $60,000 was “due to a divorce settlement”, and Norman                   
          attached to the letter petitioner’s application to open her IRA.            
               On August 4, 1999, Dreyfus transferred the $60,000 from                
          Norman’s IRA directly into petitioner’s IRA.                                
               Four and a half months later, on December 21, 1999,                    
          petitioner signed a Dreyfus distribution request form, in which             
          petitioner directed Dreyfus to “liquidate $60,000” from her IRA.            
          The Dreyfus form stated expressly that --                                   

               If you are requesting a distribution from a Traditional                
               IRA * * *, you acknowledge that your Traditional IRA                   
               * * * will be subject to income tax and, if you are                    
               under age 59-1/2, a 10% penalty tax for premature                      
               distribution * * *.                                                    

          Petitioner requested Dreyfus not to withhold any income tax from            
          the distribution.                                                           






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