Juanita Doby - Page 11

                                       - 10 -                                         
               Petitioner has not provided any documentary evidence to                
          substantiate her claim as to the origins of the IRA                         
          distributions.  During petitioner’s testimony she was unable to             
          identify or recall any specific transfers from her deceased                 
          spouse’s section 401(k) plan into her IRA.  Further, the                    
          statutory provisions permitting the rollover of after-tax                   
          contributions from a section 401(k) plan to an IRA was not                  
          allowed until the Economic Growth and Tax Relief Reconciliation             
          Act of 2001, Pub. L. 107-16, 115 Stat. 123, was made effective on           
          January 1, 2002.  The rollover in this case would have occurred             
          during 1999.  Therefore, under the law in effect at that time,              
          petitioner could not have rolled over after-tax contributions               
          from a section 401(k) plan into her IRA.  Thus, the total amount            
          of the IRA distributions, $11,400, made during taxable year 2000            
          by Educational Systems Employees Credit Union to petitioner is              
          required to be reported in petitioner’s 2000 gross income.                  
          Respondent’s determination on this issue is sustained.                      

          4(...continued)                                                             
                         “(A) such portion is transferred in a direct                 
                    trustee-to-trustee transfer to a qualified trust which            
                    is part of a plan which is a defined contribution plan            
                    and which agrees to separately account for amounts so             
                    transferred, including separately accounting for the              
                    portion of such distribution which is includible in               
                    gross income and the portion of such distribution which           
                    is not so includible, or                                          
                         “(B) such portion is transferred to an eligible              
                    retirement plan described in clause (i) or (ii) of                
                    paragraph (8)(B).”.                                               




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