department of the treasury internal_revenue_service washington d c tax exempt ano government entities wisien ules 408a jan se’ ti ep rat legend decedent taxpayer b taxpayer c employee d attomney e amount amount amount amount trust t subtrust u subtrust v date date date date date date c63 date month month company m ira x ira y ira z roth_ira x state w case case dear this is in response to the request for letter rulings under sec_408 and sec_408a of the internal_revenue_code code as supplemented by and correspondence dated representations support your ruling_request the following facts and decedent died on date a resident of state w decedent’s date of birth was date thus decedent had not attained his required_beginning_date as that ee _ _ term is defined in sec_401 of the code decedent was survived by his spouse taxpayer b whose date of birth was date at the time of his death the decedent owned four individual_retirement_accounts ira x ira y ira z and roth_ira x with company m decedent's death the values of ira x ira y jra z and roth_ira x were approximately amount amount amount and amount respectively the named beneficiary of each ira including roth_ira x was trust t dated date trust t was amended on date as of the date of article of trust t provides in relevant part that upon the death of decedent taxpayer b became the sole trustee of trust t relevant provisions of trust t provide that after the death of the first of decedent and taxpayer b the trust estate with exceptions not pertinent to this ruling_request will be allocated to either subtrnst u or subtrust v article of trust t in relevant part provides that after allocation of trust t assets to either subtrust u or subtrust v the survivor of decedent and taxpayer b taxpayer b may revoke and amend subtrustu article of trust t in relevant part provides that the trust t trustee shall allocate to subtrust u amounts from the deceased spouse’s separate trust estate if any a general pecuniary gift equal to the minimum amount that will entirely eliminate or reduce as far as possible the federal estate_tax after allowance of all other deductions when added to the sum of other assets defined therein article of trust t which refers to subteust u provides in relevant part that the trustee shall pay to or for the surviving_spouse as much of the net_income of the trust estate and also as much of the principal as the trustee deems appropriate for the surviving spouse’s health support comfort welfare or happiness taking into account his or her accustomed manner of tiving and other resources reasonable available to him or her under article the surviving_spouse may at any time direct the trustee in writing to pay single sums or periodic_payments of the trust estate to any person or organization the surviving_spouse may at any time revoke or amend subtrust u in whole or in part by a written document delivered to the trustee if a person other than the surviving_spouse is the trustee on the surviving spouse's death the trustee is to distribute the remainder of the trust estate to such one cr more persons and entities including the surviving spouse's estate as the surviving_spouse shall appoint this power is to be exercisable by the surviving_spouse alone and in all events article of trust t provides in relevant part that trust t and its sub-trusts shall be governed under the laws of state w paget it has been represented that under the laws of state w the above-cited language of article of trust t gives the trustee of trust t the power to distribute any or all of the assets held in subtrust u to the surviving_spouse taxpayer b for any purpose ithas been represented that assets held in iras x y and z and roth_ira x had been allocated to subtrust u by the trust t trustee taxpayer b in month employee d an employee of company m who was taxpayer b’s financial advisor advised taxpayer b and her son taxpayer c that because trust t had been named the beneficiary of decedent’s ira x ira y ira z and roth_ira x ‘taxpayer b was required to distribute the entire account balances of decedent's four iras immediately to accounts established in the name of trust t and that taxpayer b had no alternatives with respect to said ira assets accordingly based on the representations of employee d on date all of the assets in the four iras were distributed and placed in a_trust t account shortly after date taxpayers b and c were advised by a family_member that their date actions resulted had significant federal tax consequences on or about date taxpayer c called employee d to determine if the information he and his mother taxpayer b had received from the above-referenced family_member was correct employee d indicated that the information was correct that the distributions to the trust t account resulted in substantial tax_liability but that there was nothing company m could do to reverse the transactions during the date phone call taxpayer c asked employee d if it would be possible to retum part or all of the funds distributed from iras x y and z and roth_ira x to the iras employee d responded thet such transactions could not be accomplished date was within days of date the date on which the ira_distributions were made during month taxpayer b consulted with attomey e regarding matters pertaining to trust t attomey e advised taxpayer b that the information provided by employee d may not have been correct but that the 60-day rollover period applicable to the date distributions referenced above had expired as of the date of this ruling_request the assets distributed from the four iras which are the subject matter of this ruling_request remain in the trust t account referenced above based on the above facts and representations you through your authorized representative request the following letter rulings ‘ l that although trust t was the named beneficiary of the three traditional iras referenced herein with respect to taxpayer b neither ira x ira y nor ira z was an inherited individual_retirement_account ira that although trust t was the named beneficiary of the roth_ira referenced herein with respect to taxpayer b roth_ira x was not an inherited roth individual_retirement_account ira that since ira x ira y and ira z were not inherited iras with respect to taxpayer b taxpayer b was eligible to roll over ot transfer the assets held in said iras at the death of decedent into one or more iras set up and maintained in her name that since roth_ira x was not an inherited roth_ira with respect to ‘taxpayer b taxpayer b was eligible to roll over or transfer the assets held in said roth_ira at the death of decedent into a roth_ira set up and maintained in her name ‘that pursuant to code sec_408 taxpayer b is granted a period not to exceed days as measured from the date of this ruling letter to contribute by means of a rollover_contribution or contributions the amounts distributed from ira x ira y and ira z into one or more traditional iras set up and maintained in her name and that pursuant to code sec_408a a code sec_408a c code sec_408a and code sec_408 taxpayer b is granted a period not to exceed days as measured from the date of this ruling letter to contribute by means of a rollover_contribution the amounts distributed from roth_ira x into a roth_ira set up and maintained in her name with respect to your ruling requests sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the 60th day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property ig paid into an eligible_retirement_plan other than an ira for the benefit of such’ individual not later than the 60th day after the date on which the payment or distribution is received except that the maximum amouat which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 teceived by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 a i from an ira which was not includible in gross_income because of the application of sec_408 code sec_408 c provides generally that amounts from an inherited ira cannot be rolled over into another ira in general an inherited tra is an ira maintained by an individual who acquired said ira by teason of the death of another if the acquiring individual is not the surviving_spouse of said other individual in this case as noted above taxpayer b is decedent’s surviving_spouse sec_408 of the code provides a similar 60-day rollover period for code sec_408 provides in summary that this paragraph does not apply to any amount required to be distributed in accordance with subsection a or b code sec_401 a required distributions sec_408 of the code provides that the secretary may waive the day requirement under sec_408 and sec_408 d of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date are eligible for the waiver under sec_408 of the code code sec_408a a provides that except as provided in this section a roth_ira shall be treated for purposes of this title in the same manner as an individual_retirement_plan code sec_408a provides that no rollover_contribution may be made to a roth_ira unless it is a qualified_rollover_contribution partial rollovers code sec_408a e provides in relevant part that for purposes of cade sec_408a the term qualified_rollover_contribution means a contribution to a roth_ira from another such account but only if such rollover_contribution meets the requirements of code sec_408 revproc_2003_16 lr b date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred ‘the preamble to the final income_tax regulations under sec_401 of the code provides in relevant part that a surviving_spouse may'elect to treat an ira of his her deceased spouse as his her own if the surviving_spouse is the sole beneficiary of the ira with an pniimited right to withdraw from the ira a surviving_spouse may not elect to treat an ira ds his her own if a_trust is the beneficiary of the ira however a surviving_spouse may be eligible to roll over a distribution from an ira of a decedent if the spouse actually receives the distribution regardless of whether the spouse is the sole beneficiary of the ira see preamble pincite federal_register date ‘the preamble to the final regulations also provides that a surviving_spouse may not elect to treat as her own the required_distribution to the extent not taken prior to death for the calendar_year of the ira owner's death in this case state w law governs in construing the provisions of subtrust u which define taxpayer b's rights to the ira accounts under the law of state w subtrust u grants to taxpayer b the unfettered right to withdraw the ira accounts from subtrust u case case with respect to your ruling requests generally if either a decedent's qualified_plan assets or a decedent's ira assets including roth jra assets pass through a third party e g an estate or a_trust and then are distiibuted to the decedent's surviving_spouse said spouse will be treated as acquiring them from the third party and not from the decedent thus generally said surviving_spouse will not be eligible to roll over the qualified_plan proceeds into her own ira however in certain situations the service does not apply the general_rule with respect to the rule’s application in this case the language of trust t and ‘subtrust u gives ‘taxpayer b the power to pay any or all part of the subtrust u assets to herself as beneficiary of subtrust u thus taxpayer b had the absolute right to receive the four iras referenced herein and total control_over the disposition of said iras as a result the disposition of said iras lay outside the control of anyone other than taxpayer b ‘asa result of its specific facts of this case the service will not apply the general tule above in this case therefore with respect to your first four tuling requests we conclude as follows that although trust t was the named beneficiary of the three traditional iras referenced herein with respect to taxpayer b neither ira x ira y nor ira z was an inherited individual_retirement_account ra that although trust t was the named beneficiary of the roth_ira reterenced herein with respect to taxpayer b roth tra x was not an inherited roth individual_retirement_account ira that since ira x ira y and ira z were not inherited iras with respect to taxpayer b taxpayer b was eligible to roll over or transfer the assets held in said iras at the death of decedent into one or more iras set up and maintained in her name that since roth_ira x was not an inherited roth_ira with respect to taxpayer b taxpayer b was eligible to roll over or transfer the assets held in said roth_ira at the death of decedent into a roth_ira set up and maintained in her name with respect to your fifth and sixth ruling requests we note that taxpayer b’s failure to complete timely rollovers of the amounts distributed from the four iras referenced herein was due to her reliance on the advice of company m’s employee d which advice did not inform her correctly as to either her rights with respect to said ira amounts or as to the tax consequences of her withdrawing the amounts from said ira and transferring said amounts into an account set up and maintained in the name of trust t ‘thus with respect to your fifth and sixth ruling requests we conclude as follows that pursuant to code sec_408 taxpayer b is granted a period not to exceed days as measured from the date of this ruling letter to contribute by means of a rollover_contribution or contributions the amounts distributed from ira x ira y and ira z into one or more iras set up and maintained in her name and pagegrm come wren ee that pursuant to code sec_408a code sec_408a code sec_408a and code sec_408 taxpayer b is granted a period not to exceed days as measured from the date of this ruling letter to contribute by means of a rollover_contribution the amounts distributed from roth_ira x into a roth_ira set bp and maintained in her name this ruling letter is based on the assumption that ira x ira y and ra z met sec_408a at all times relevant thereto it also assumes that the requirements of code sec_408 at all times relevant thereto roth_ira x met the requirements of code furthermore it assumes that the ira or iras and the roth_ira into which taxpayer b will contribute the amounts or portions thereof will also meet the requirements of either code sec_408 or code sec_408a at all times relevant thereto it also assumes that trust t is valid under the laws of state w as represented no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto ‘this letter is directed only to the taxpayer who requested it sec_6110 k of the code provides that it may not be used or cited as precedent copy of this letter has been sent to your authorized representatives in ‘a accordance with a power of attomey on file in this office if you wish to inquire about this ruling please contact esquire id please address all correspondence to se t ep ra t at either - phone or fax sincerely yours frances v sloan mghagér employee_plans technical group enclosures deleted copy of ruling letter notice of intention to disclose


qwhuqdo 5hyhqxh 6huylfh department of the treasury number release date index nos washington dc person to contact telephone number refer reply to cc ita - plr-139124-01 date date legend company m dear this letter is in response to your request for a ruling concerning the application of sec_61 and sec_170 of the internal_revenue_code to the program described below specifically you request rulings that the value of m received as rebates for purchased products or services are not included in your gross_income under sec_61 but rather are treated as a reduction in basis of the property purchased under sec_1016 and the payment of rebates of m by company to a charitable_organization described in sec_170 will qualify as a charitable_contribution by you under sec_170 to the extent provided by sec_170 facts you are a member in a program administered by company company offers members such as you incentives for purchasing products and services at merchants’ retail stores direct from suppliers and on-line using company’s website company administers the member program primarily through its website members such as you who agree to the terms and conditions contained in the membership agreement may earn m in two ways members may earn m based on the amount of the members’ products and services purchased from participating merchants secondly members may earn m as additional bonus incentives for participation in such activities as enrolling in the member program members accumulate m which may be plr-139124-01 redeemed by members for merchandise or cash from the participating merchants another option available to the member is to elect to donate m to an entity described in sec_170 which may redeem m members may make this election on the website by clicking on the donate button and designating how many points they wish to donate company administers the merchant component of its program by soliciting merchants to join the m plan and then entering into a plan agreement with them pursuant to the plan agreement company is obligated to perform certain functions including the provision of all materials necessary to facilitate the execution of transactions electronically crediting members’ accounts with m company retains title to equipment forms redemption materials and other items related to the system through which m are awarded and company licenses the necessary items to the merchant for stated fees in addition the merchants agree to fund the purchase of m awarded to members based on the amount of the products and services purchased by members rebate m company retains initial title to rebate m at the time rebate m are issued title passes from company to the merchant and then to the member such as you to whom they are awarded each member including you is able to track the receipt and disbursement of m through a separate_account on company’s website accessible through a login and password for contributions to charity the account lists the designated recipient and the amount of m contributed in addition each member is able to track the amount of his or her rebate m and m awarded as bonus incentives which are separately accounted for on the website you itemize your federal_income_tax deductions you plan to donate a certain portion of the rebate m that you have earned to a charity described in sec_170 charity company acting as your agent will make such donations directly to charity company will provide charity with your name and address for purposes of complying with the sec_170 acknowledgment rules the recipient charity will provide any required acknowledgment under sec_170 law and analysis ruling_request sec_61 of the code provides that gross_income means income from whatever source derived plr-139124-01 sec_1012 provides that the basis_of_property shall be the cost of such property except as otherwise provided sec_1016 provides that proper adjustment in respect of the basis_of_property shall be made for expenditures receipts losses or other items properly chargeable to capital_account revrul_84_41 1984_1_cb_130 holds that a manufacturer’s rebate received by an automobile dealer represents a trade discount and must be treated by the dealer as a reduction in the cost of the automobile and not as gross_income likewise revrul_76_96 1976_1_cb_23 holds that amounts paid_by an automobile manufacturer to retail customers who purchase new automobiles are not includible in the gross_income of the customers the amounts are rebates and represent a reduction in the purchase_price of the automobiles in the present situation you have represented that a member may receive m in connection with products or services purchased from the participating merchants you have also represented that at the time rebate m are issued to a member title passes from company to the merchant and then to the member to whom the m are awarded as in the revenue rulings described above the amount of the rebate is based on solely on the amount of purchases thus rebate m qualify as rebates which you exclude from gross_income under sec_61 under sec_1016 the value of rebate m reduces the basis of merchandise purchased ruling_request sec_170 provides subject_to certain limitations a deduction for charitable_contributions described in sec_170 payment of which is made within the taxable_year sec_170 states in part that the term charitable_contribution means a contribution or gift to or for_the_use_of a qualified_organization sec_170 provides that no deduction is allowed under sec_170 for a contribution of dollar_figure or more unless the taxpayer substantiates the contribution with a contemporaneous written acknowledgment of the contribution from a charitable_organization sec_170 sets forth the information that must be included in the contemporaneous written acknowledgment sec_1_170a-1 of the income_tax regulations provides that a charitable_contribution is ordinarily made at the time the delivery is effected a charitable_contribution must be made voluntarily and with donative_intent 477_us_105 in american bar endowment a membership_organization maintained a group_insurance program for its members every year excess insurance premiums_paid by members were refunded to plr-139124-01 the organization this excess was called a dividend as a condition of participating in the insurance program members were required to assign their rights to a pro_rata portion of the dividends to the organization the organization used the dividends to fund charitable grants members participating in the group_insurance program claimed charitable deductions under sec_170 for their pro_rata shares of the dividends the supreme court disallowed these deductions concluding that the assignments were not voluntary the court suggested that it would have reached a different result were the abe to give each member a choice between retaining his pro_rata share of dividends or assigning them to charity in the present case you may choose to donate m to charity this opportunity to donate is described in the membership agreement that was provided to you when you joined the program administered by company you make this election by clicking on the donate button on the website and designating how many points you wish to donate this element of choice distinguishes company’s program from the group_insurance program in american bar endowment where participants could not choose to retain the dividends assigned them the opportunity to decide whether payments will be made to charity renders the payments voluntary in the present case company is authorized to act on your behalf thus there is no delivery of a charitable_contribution when company receives m as designated by you rather delivery to charity occurs when company transfers m to charity therefore you will be entitled to treat as charitable_contributions the m paid within the taxable_year to charity on your behalf sec_170 provides that no deduction is allowed for a charitable_contribution of dollar_figure or more unless the taxpayer substantiates the contribution by a contemporaneous written acknowledgment of the contribution the requirements for the contemporaneous written acknowledgment are set forth in sec_170 under sec_170 if company makes a lump-sum transfer to a charity of dollar_figure or more on your behalf you must substantiate the contribution with a contemporaneous written acknowledgment that meets the requirements of sec_170 you have represented that for amounts contributed in excess of dollar_figure company will provide charity with your name and address with this information charity will be able to provide the substantiation required by sec_170 to be obtained by donors accordingly your contribution of rebate m to charity may qualify as a charitable_contribution by you under sec_170 conclusions based strictly on all of the facts submitted and representations made we conclude the value of m received as rebates for products or services purchased from participating merchants is not included in your gross_income under sec_61 but rather is treated as a reduction in basis of the property purchased under sec_1016 the contribution of rebates of m to a charitable_organization described in sec_170 by company acting as an your agent may qualify as a charitable_contribution by you under sec_170 caveats you have not requested a ruling and we express no opinion concerning whether you are allowed a charitable_contribution_deduction for the value of the bonus points contributed to a charity or whether the bonus points are excludable from your income a copy of this letter must be attached to any income_tax return to which it is relevant we enclose a copy of the letter for this purpose also enclosed is a copy of the letter_ruling showing the deletions proposed to be made in the letter when it is disclosed under sec_6110 of the internal_revenue_code except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any item discussed or referenced in this letter this ruling is directed only to the taxpayer s requesting it sec_6110 provides that it may not be used or cited as precedent sincerely michael j montemurro senior technician reviewer office of associate chief_counsel income_tax accounting enclosures


t c memo united_states tax_court richard j montgomery and adele s montgomery petitioners v commissioner of internal revenue respondent docket no filed date edward l blanton jr for petitioners alan r peregoy for respondent memorandum findings_of_fact and opinion dawson judge this case was assigned to special_trial_judge robert n armen jr pursuant to the provisions of sec_7443a of the internal_revenue_code_of_1986 as amended and rule sec_180 sec_181 and sec_183 the court agrees with and adopts the opinion of the special_trial_judge which is set forth below unless otherwise indicated all section references are to the internal_revenue_code in effect for the taxable_year in issue and all rule references are to the tax_court rules_of_practice and procedure opinion of the special_trial_judge armen special_trial_judge respondent determined a deficiency in petitioners' federal excise_tax under sec_4980a for the taxable_year in the amount of dollar_figure in the petition petitioners claimed an overpayment of income_tax in the amount of dollar_figure with respect to the additional tax imposed under sec_72 after a concession by respondent the issues for decision are whether petitioner richard j montgomery is liable for the 15-percent excise_tax under sec_4980a for taxable_year and whether petitioners are liable for the 10-percent additional tax imposed under sec_72 on early distributions from qualified_retirement_plans for the taxable_year the resolution of these issues turns on whether a transfer refund distribution was paid from a qualified_plan pursuant to sec_4980a sec_72 and sec_4974 findings_of_fact some of the facts have been stipulated and they are so found petitioners resided in hagerstown maryland at the time that their petition was filed with the court sec_4980a imposes a 15-percent excise_tax on excess distributions from qualified_retirement_plans this tax is included within ch of the i r c and is subject_to the deficiency procedures set forth in subch b of ch of the i r c see sec_6211 respondent concedes that petitioner adele s montgomery is not liable for the deficiency in issue herein petitioner richard j montgomery petitioner is a teacher he was employed by the hagerstown maryland community college the hagerstown junior college in and remained so employed at least through the time that this case was submitted for decision as an employee of the hagerstown junior college petitioner was a member of the maryland state teachers' retirement_system the retirement_system until he transferred to the maryland state teachers' pension system the pension system on date in determination letters dated date respondent determined that the retirement_system and the pension system were qualified_plans under sec_401 and that they maintained trusts that were exempt from income_tax under the provisions of sec_501 in years after respondent issued the determination letters the maryland state legislature amended some of the provisions in the retirement_system respondent did not re-evaluate the provisions of the retirement_system after the enactment of the amendments by the maryland state legislature the retirement_system requires mandatory nondeductible employee contributions in contrast the pension system does not generally require such contributions the state of maryland contributes to both the retirement_system and the pension system on behalf of the members of those systems on date petitioner elected to transfer from the retirement_system to the pension system effective date as a result of the election to transfer petitioner received a distribution the transfer refund from the retirement_system in the amount of dollar_figure petitioner received the transfer refund in the form of two checks dated date and date petitioner's transfer refund consisted of dollar_figure in previously taxed contributions made by petitioner during his employment tenure with hagerstown junior college dollar_figure in employer pick-up contributions and interest thereon and dollar_figure of taxable earnings in the form of interest the earnings pick-up contributions and interest on the pick-up contributions ie dollar_figure constitute the taxable_portion of the transfer refund when petitioner transferred from the retirement_system to the pension system and when he received his transfer refund he had attained the age of if petitioner had not transferred to the pension system but had remained a member of the retirement_system he would have been entitled to retire and receive a normal service retirement benefit including a regular monthly annuity at age he would not have been entitled to receive a see sec_414 the parties stipulated that petitioner received dollar_figure of employer pick up contributions and interest however the record demonstrates that petitioner actually received dollar_figure of such contributions and interest transfer refund because a transfer refund is payable only as a result of transferring from the retirement_system to the pension system as a result of transferring from the retirement_system to the pension system petitioner became and presently is a member of the pension system as a member of the pension system petitioner is entitled to receive a retirement benefit based upon his salary and his creditable years_of_service specifically including those years of creditable service recognized under the retirement_system however because petitioner received the transfer refund on account of transferring from the retirement_system to the pension system petitioner's monthly annuity is less than the monthly annuity that he would have received if he had not transferred to the pension system but had retired under the retirement_system on their federal_income_tax return form_1040 for petitioners reported total pensions and annuities in the amount of dollar_figure of this amount petitioners reported dollar_figure as the taxable_amount petitioners attached form_5329 return for additional taxes attributable to qualified_retirement_plans including iras annuities and modified endowment contracts to their return in part ii of such form petitioners reported liability for the additional tax under sec_72 in the amount of dollar_figure in the notice_of_deficiency respondent determined a deficiency in petitioners' excise_tax under sec_4980a in the amount of dollar_figure in the petition petitioners claimed an overpayment of income_tax in the amount of dollar_figure with respect to the additional tax imposed under sec_72 opinion the issues for decision are whether petitioner richard j montgomery is liable for the 15-percent excise_tax under sec_4980a and whether petitioners are liable for the 10-percent additional tax under sec_72 as previously noted the resolution of these issues turns on whether the transfer refund was paid from a qualified_plan within the meaning of sec_4980a sec_72 and sec_4974 sec_4980a issue sec_4980a imposes a 15-percent excise_tax on excess distributions from qualified_retirement_plans sec_4980a as relevant herein an excess_distribution is defined as the aggregate amount of retirement distributions with respect to any individual during any calendar_year to the extent that such amount exceeds dollar_figure sec_4980a retirement distributions are the amounts distributed to an individual under an individual_retirement_plan or any qualified_employer_plan with respect to which such individual is or was the employee see supra note regarding respondent's concession sec_4980a as relevant herein sec_4980a defines a qualified_employer_plan as a plan described in sec_401 which includes a_trust exempt from tax under sec_501 a qualified_employer_plan includes any plan which at any time has been determined by the commissioner to be such a plan petitioners contend that the retirement_system has never met the definition of a qualified_employer_plan in advancing this contention petitioners rely on sec_54 4981a-1t a- c i temporary qualified_pension plan excise_tax regs fed reg date this regulation provides as relevant herein that an employer plan will be considered to have been treated as a qualified_employer_plan if any employer maintaining the plan has at any time filed an income_tax return and claimed deductions that would be allowable under sec_404 and that were not disallowed only if the plan was a qualified_employer_plan under sec_401 or sec_403 petitioners argue that this regulation is an exclusive definition of the term qualified_employer_plan and that such definition only includes those plans where the employer maintaining the plan is required to file a federal_income_tax return thus petitioners contend the term qualified_employer_plan does not include governmental plans we disagree with petitioners sec_54 4981a-1t a- c i temporary qualified_pension plan excise_tax regs does not offer an exclusive definition of qualified_employer plans rather it illustrates one example of when a plan will be treated as a qualified_employer_plan under the plain language of sec_4980a a qualified_employer_plan includes a plan which at any time has been determined by the commissioner to be a qualified_plan ie by means of a determination_letter as in the present case thus the fact the retirement_system is a governmental_plan does not preclude it from satisfying the definition of a qualified_employer_plan petitioners also contend that the amendments made to the retirement_system in violate various provisions of sec_401 and terminated its qualified status so that the retirement_system was not a qualified_employer_plan at the time it issued petitioner's transfer refund in petitioners argue that the excise_tax under sec_4980a should not apply to petitioner's transfer refund unless the retirement_system was a qualified_employer_plan at the time that it distributed the transfer refund respondent contends that for purposes of sec_4980a the qualified status of the retirement_system at the time of petitioner's distribution is irrelevant specifically respondent contends that under the plain language of sec_4980a once the commissioner determines that a plan is a qualified_employer_plan the plan's status for purposes of sec_4980a is not changed by subsequent events that might disqualify the plan thus respondent contends that the retirement_system is a qualified_employer_plan because respondent issued a determination_letter to that effect on date we agree with respondent sec_4980a defines a qualified_employer_plan to include any plan which at any time has been determined by the commissioner to be such a plan the regulations promulgated under sec_4980a further provide distributions under any plan that has at any time been treated as a qualified_employer_plan will be treated for purposes of section 4980a as distributions from a qualified_employer_plan whether or not such plan satisfies the applicable_requirements at the time of the distribution sec_54 4981a- 1t a-3 c temporary qualified_pension plan excise_tax regs emphasis added petitioners' contention that the retirement_system is required to have been a qualified_plan on the date of petitioner's distribution is inconsistent with the plain meaning of the words used in sec_4980a that section merely requires that a plan be determined to be a qualified_employer_plan at some point in time and not necessarily on the date of the retirement distribution in the instant case respondent issued a possible explanation for this definition of a qualified_employer_plan is that such a definition prevents an employer maintaining a small_employer plan from intentionally disqualifying the plan by violating one of the technical sec a determination_letter on date providing that the retirement_system was a plan described in sec_401 that included a_trust exempt from tax under sec_501 thus under the plain language of sec_4980a and under sec_54 4981a-1t a-3 c temporary qualified_pension plan excise_tax regs the retirement_system satisfies the definition of a qualified_employer_plan because it has been treated by respondent to be such a plan the only technical arguments advanced by petitioners concern the qualified status of the retirement_system under sec_401 petitioners do not set forth any compelling reason why sec_4980a should not be applied to give effect to the plain meaning of the words used therein where a statute is clear on its face as in this case we require unequivocal evidence of contrary purpose before construing the statute in a manner that overrides the plain meaning of the statutory words 83_tc_742 no such contrary purpose has been shown here because we are satisfied that our analysis of sec_4980a leads to the conclusion that the retirement_system was a qualified_employer_plan under sec_4980a we sustain respondent's determination that petitioner is liable for the percent excise_tax under sec_4980a a requirements prior to making a distribution in order to avoid the excise_tax on excess distributions sec_72 issue sec_72 provides for a 10-percent additional tax on early distributions from qualified_retirement_plans paragraph which imposes the tax provides in relevant part as follows imposition of additional tax --if any taxpayer receives any amount from a qualified_retirement_plan as defined in sec_4974 the taxpayer's tax under this chapter for the taxable_year in which such amount is received shall be increased by an amount equal to percent of the portion of such amount which is includible in gross_income as relevant herein sec_4974 defines a qualified_employer_plan as a plan described in sec_401 which includes a_trust exempt from tax under sec_501 and a plan which the commissioner at any time has determined to be such a plan the 10-percent additional tax does not apply to certain distributions for example sec_72 provides that the 10-percent additional tax does not apply to distributions that are made on or after the date on which the taxpayer attains age made to a beneficiary or to the estate of the taxpayer on or after the death of the taxpayer attributable to the taxpayer's being disabled or made to a taxpayer after separation_from_service after attainment of age petitioners do not contend that they qualify for any of the statutory exceptions under sec_72 and indeed they do not satisfy any of those exceptions petitioners advance the same arguments with regard to sec_72 as they did with respect to sec_4980a namely that the additional tax under sec_72 does not apply to petitioner's transfer refund because due to the plan revisions the retirement_system was not a qualified_retirement_plan within the meaning of sec_4974 at the time that it issued petitioner's transfer refund respondent contends that the retirement_system is a qualified_retirement_plan under the plain language of sec_4974 because respondent issued a determination_letter on date providing that the retirement_system was such a plan respondent further contends that under the plain language of sec_4974 the qualified status of the retirement_system at the time of petitioner's distribution is irrelevant as relevant herein the definition of a qualified_retirement_plan under sec_4974 is virtually identical to the definition of a qualified_employer_plan under sec_4980a significantly the definition of a qualified_retirement_plan under sec_4974 specifies as does the definition of a qualified_employer_plan under sec_4980a that a qualified_retirement_plan includes a plan that at any time has been determined by the commissioner to be such a plan under the plain language of sec_4974 the retirement_system meets the definition of a qualified_retirement_plan because on date respondent determined it to be such a plan although petitioners contend that the retirement_system must be qualified on the date of petitioner's transfer refund in order to be a qualified_employer_plan such requirement is inconsistent with the plain meaning of the words used in sec_4974 because petitioners offer no compelling reason to construe the words of sec_4974 in such a way that would be inconsistent with their plain meaning we give effect to the plain meaning of the words used therein and sustain respondent's determination that petitioners are liable for the 10-percent additional tax under sec_72 we have considered petitioners' remaining arguments and find them unpersuasive conclusion in order to give effect to our disposition of the disputed issues as well as respondent's concession decision will be entered under rule