Charlotte and Charles T. Gee - Page 5

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          additional tax.  Petitioner argues that the entire distribution             
          she received from her IRA was an amount received on or after the            
          death of Mr. Campbell.4  We note that this Court has not                    
          previously decided whether an IRA distribution retains its                  
          character as a distribution to a beneficiary “on or after the               
          death of an employee” if the distribution is of funds that were             
          rolled over to the IRA upon the employee’s death.                           
               Respondent argues that once petitioner as surviving spouse             
          decided to maintain the funds in an account in her own name as              
          owner of the IRA, she became the owner of the IRA “for all                  
          purposes of the Code,” relying upon section 1.408-8, Q&A-5 and 7,           
          Income Tax Regs.  Petitioner counters that the funds from her               
          deceased husband’s IRA did not lose their character as funds from           
          her deceased husband’s IRA.  Even though petitioner rolled over             
          the funds from her deceased husband’s IRA into her separate IRA,            
          petitioner did not make any additional contributions after her              
          husband died and also did not “redesignate” the account as her              
          own.  See sec. 1.408-8, A-5(b), Income Tax Regs.  We agree with             
          respondent.                                                                 
               We find that petitioner received the distribution from her             
          own IRA, not from an IRA of which she was a beneficiary on or               
          after the death of an employee.  We further find that the source            
          of the amount received, whether originating from her deceased               
          husband’s IRA or petitioner’s own contributions, is irrelevant.             
          We recognize that petitioner may not have technically                       

               4Petitioner specifically argues that the distribution was of           
          funds she inherited from her deceased husband’s IRA.  We use the            
          statutory language rather than the vernacular petitioner uses.              




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