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taxation of distributions from a qualified pension plan. Section
402(a) provides that any amount distributed from a qualified
pension plan, including a governmental plan, is generally taxable
to the distributee under such a plan.
In Darby v. Commissioner, 97 T.C. 51 (1991), the Court
addressed the meaning of the term “distributee” in section 402(a)
in the context of a qualified pension plan, which was not a
governmental plan (or any other qualified plan) that was not
subject to the so-called spendthrift provisions of section
401(a)(13).20 The Court held there that the term “distributee”
in section 402(a) ordinarily means the participant or the benefi-
ciary who is entitled under such a plan to receive a distribu-
tion. Darby v. Commissioner, supra at 58. In so holding,21 the
19(...continued)
distributions from qualified pension plans. See Darby v. Commis-
sioner, 97 T.C. 51, 58 (1991). Unlike the instant cases, Pfister
and Witcher did not involve qualified pension plans. Those cases
involved Federal military retirement programs that are subject to
Federal statutes that do not apply in the instant cases. The
parties’ reliance on sec. 61(a)(11) and on Pfister and Witcher is
misplaced.
20All references hereinafter to the spendthrift provisions
are to the provisions of sec. 401(a)(13) that, with certain
exceptions, prohibit the assignment and alienation of benefits
under a qualified pension plan.
21The rationale on which the Court based its holding in
Darby v. Commissioner, supra, related in large part to Congress’
addition to the Code in 1984 of the provisions relating to
qualified domestic relations orders (QDRO provisions). Those
provisions include sec. 414(p), which defines the term “qualified
domestic relations order” (QDRO), and sec. 402(e)(1)(A) (origi-
(continued...)
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