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“separation from service”. Under this option, the form stated
that “any indebtedness thereon to the company will be deducted
from the cash value.” Petitioner elected, in the section
entitled “Federal Income Tax Withholding Election for ‘Non-
Eligible Rollover Distributions’”, not to have Federal income tax
withheld from the taxable portion of his distribution check. In
response, Americo sent petitioner a letter, dated May 18, 2001,
requesting petitioner to: (1) Clarify whether he wanted a
transfer or a direct distribution; (2) return the policy contract
or submit written acknowledgment that the policy had been lost or
destroyed; and (3) submit written acknowledgment of the reason or
eligibility for a direct distribution under the Technical and
Miscellaneous Revenue Act of 1988 (TAMRA, Pub. L. 100-647, 102
Stat. 3342) (the options listed were: Age 59-1/2; separation
from service with employer; disability; and financial hardship as
defined by the I.R.C.). On the letter, petitioner marked
“separation from service with employer” and “financial hardship
as defined by the I.R.C.” and signed the letter on May 21, 2001.
On June 7, 2001, petitioner submitted to Americo another
Surrender Request form certifying that the policy had been lost
or destroyed.
With regard to the second policy, and similarly with respect
to the first policy, petitioner submitted to Americo a Surrender
Request form electing a full cash surrender of this policy
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Last modified: May 25, 2011