Alfred E. Gallade v. Commissioner

106 T.C. No. 20

UNITED STATES TAX COURT ALFRED E. GALLADE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 791-94, 792-94. Filed May 28, 1996. C, P’s wholly owned corporation, operated a pension plan in which P participated. Because of C’s poor financial disposition, P executed a “waiver”, to assign his fully vested, accrued benefits to C. Due to the waiver, P did not report any taxable distribution. R determined that P’s waiver was an impermissible attempt to assign or alienate his benefits in violation of sec. 206(d)(1) of ERISA and sec. 401(a)(13), I.R.C. 1. Held: P…