Linda Louise Lodder-Beckert and Timothy Beckert - Page 1

                                 T.C. Memo. 2005-162                                  

                               UNITED STATES TAX COURT                                

          LINDA LOUISE LODDER-BECKERT AND TIMOTHY BECKERT, Petitioner v.              
          COMMISSIONER OF INTERNAL REVENUE, Respondent                                

               Docket No. 10752-04.               Filed July 5, 2005.                 

                    P stopped working in 1999 to attend college.  At                  
               that time, P had $34,656.29 in a public employees                      
               retirement system (PERS) account.  When she asked PERS                 
               to transfer that balance to an individual retirement                   
               account (IRA), she was advised that the Ohio General                   
               Assembly was actively pursuing legislation that would                  
               significantly increase the value of her PERS account.                  
               P deferred her transfer request and paid for her                       
               education with student loans and credit card debts.                    
               When the legislation was enacted in late 2000, P                       
               renewed her request for the transfer of the PERS                       
               balance (which on account of the legislation then                      
               totaled $81,513.38).  PERS completed the transfer on or                
               about Jan. 2, 2001.  In 2001, P requested and received                 
               two distributions from her IRA.  P used part of the                    
               distributed amounts to pay down her credit card debts                  
               which were incurred to pay qualified higher education                  
               expenses for 1999 and 2000.                                            
                    Held:  Sec. 72(t)(2)(E), I.R.C., does not allow P                 
               to escape the additional tax of sec. 72(t)(1), I.R.C.,                 

Page:   1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011