Lee E. Seidel - Page 13

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          generally provides for current taxation of distributions as                 
          ordinary income.                                                            
               The Code does not define the word “distributee” as used in             
          section 402(a); neither do the regulations.  The Court has                  
          concluded that a distributee of a distribution under a plan                 
          ordinarily is the participant or beneficiary who, under the plan,           
          is entitled to receive the distribution.  See Darby v.                      
          Commissioner, supra at 58; Estate of Machat v. Commissioner, T.C.           
          Memo. 1998-154; Smith v. Commissioner, T.C. Memo. 1996-292.                 
               Section 402(e)(1)(A), however, provides an exception to this           
          general rule.  Section 402(e)(1)(A) provides that an “alternate             
          payee” who is the spouse or former spouse of the plan participant           
          shall be treated as the distributee of any distribution or                  
          payment made to the “alternate payee” under a “qualified domestic           
          relations order” as defined in section 414(p).  Therefore, a                
          distribution made to such an alternate payee under a QDRO will be           
          taxable to the alternate payee, and not to the plan participant,            
          because section 402(e)(1)(A) treats the alternate payee as the              
               The Retirement Equity Act of 1984 (REA), Pub. L. 98-397,               
          sec. 204(b), 98 Stat. 1445, added section 414(p), which defines a           
          QDRO.  Section 414(p) provides, in pertinent part, the following:           
               SEC. 414(p).  Qualified Domestic Relations Order Defined.--            
          For purposes of this subsection and section 401(a)(13)--                    
                    (1) In general.--                                                 

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