Fowler v. Commissioner
United States Tax Court
Petitioner husband received lump-sum distributions from his employer's profit-sharing and incentive savings plans in 1986 on account of his separation from service. Both plans were qualified under sec. 401(a), I.R.C. P elected to roll over the total taxable amount of the incentive savings distribution pursuant to sec. 402(a)(5), I.R.C., and elected 10-year averaging under sec. 402(e)(1), I.R.C., with respect to the profit-sharing distribution.
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Petitioner husband received lump-sum distributions from his employer's profit-sharing and incentive savings plans in 1986 on account of his separation from service. Both plans were qualified under sec. 401(a), I.R.C. P elected to roll over the total taxable amount of the incentive savings distribution pursuant to sec. 402(a)(5), I.R.C., and elected 10-year averaging under sec. 402(e)(1), I.R.C., with respect to the profit-sharing distribution. Held, 10-year averaging as provided by sec. 402(e)(1), I.R.C., is available only to taxpayers electing such treatment for all lump-sum distributions…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency in petitioners' Federal income tax for 1986 of $110,364 and an addition to tax under section 6661(a)1 of $27,591. Respondent having conceded the addition to tax, the issue for decision is whether petitioners may elect 10-year averaging of a lump-sum distribution received in 1986 without making such election for another lump-sum distribution received and rolled over in that year.
This case was submitted fully stipulated pursuant to Rule 122(a). All the facts are stipulated and are so found. The stipulation of facts and attached…
2Cases cited11 opinions
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