Bohner v. Commissioner
United States Tax Court
While P worked for the Federal Government, he participated in the Civil Service Retirement System (CSRS). After P retired, he received a letter explaining that he could elect to increase his CSRS retirement annuity by remitting a fixed sum. P remitted the funds to CSRS. Because P did not have sufficient funds in his bank account, he borrowed a portion of the fixed sum.
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While P worked for the Federal Government, he participated in the Civil Service Retirement System (CSRS). After P retired, he received a letter explaining that he could elect to increase his CSRS retirement annuity by remitting a fixed sum. P remitted the funds to CSRS. Because P did not have sufficient funds in his bank account, he borrowed a portion of the fixed sum. P paid off the loan and replenished his bank account by making withdrawals from his traditional individual retirement account (IRA). P did not report any of the amounts he withdrew from his IRA as taxable income. P contends…
1DissentHalpern, J.
I join Judge Buch’s dissent and write separately to explain why the second distribution fails. It fails under the statutory definition of a rollover. Mr. Bohner made his payment into CSRS on April 27, 2010, before he received the second distribution on May 3, 2010. Section 408(d)(3)(A) requires that the amount received as a distribution be paid into the eligible retirement plan no later than 60 days after distribution. A distribution cannot be rolled over before it is received. Judge Buch may not have included that reason because some joining his side opinion may have objected that that…
2Cases cited4 opinions
- F.B. Blansett and Ethel Blansett v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Wilkes-Barre Carriage Co. v. CommissionerUnited States Tax Court · 1963
- Wilkes-Barre Carriage Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1964
- Metrocorp, Inc. v. CommissionerUnited States Tax Court · 2001