Trebotich v. Commissioner
United States Tax Court
T received a lump-sum payment under an early retirement plan established in accordance with a collective-bargaining agreement between the ILWU and the PMA, an employers' association. The PMA collected the necessary funds from the employers and paid them over to a trust, which immediately distributed the benefits to the employees.
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T received a lump-sum payment under an early retirement plan established in accordance with a collective-bargaining agreement between the ILWU and the PMA, an employers' association. The PMA collected the necessary funds from the employers and paid them over to a trust, which immediately distributed the benefits to the employees. Held, the early retirement plan is not a qualified pension plan under sec. 401, I.R.C. 1954, because it is not funded, and the lump-sum payment is taxable as ordinary income.
1Opinion of the Court
Simpson, Judge:
The respondent determined a deficiency of $1,693.41 in the petitioners’ Federal income tax for 1967. The issue for decision is whether a lump-sum payment received by one of the petitioners under an early retirement plan should be taxed as a long-term capital gain. The answer depends upon whether, to qualify under section 401(a) of the Internal Revenue Code of 1954,1 a pension plan must be “funded” and whether the plan under which the petitioner received the lump-sum payment was funded.
ETNDINGS 03? 3?ACT
Some of the facts have been stipulated, and those facts are so found.
The…
2Cases cited13 opinions
- Stone v. WhiteSupreme Court of the United States · 1937
- Spring Canyon Coal Co. v. Commissioner of Int. Rev.Court of Appeals for the Tenth Circuit · 1930
- West Virginia Steel Corp. v. CommissionerUnited States Tax Court · 1960
- Tavannes Watch Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1949
- 555, Inc. v. CommissionerUnited States Tax Court · 1950
8 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Cohen v. CommissionerUnited States Tax Court · 1974
- Lansing v. CommissionerUnited States Tax Court · 1976
- Cohen v. CommissionerUnited States Tax Court · 1974
- Trebotich v. CommissionerUnited States Tax Court · 1971