April 9, 1982

You request a ruling concerning the income tax consequences to a retired employee of "rolling-over" assets from a retirement plan ("Plan") to an individual retirement account ("IRA"). The Plan is funded by employer and employee contributions. The employee has elected to receive a lump sum distribution representing the employee's interest in the Plan upon retirement. These assets will be transferred to an IRA within 60 days of receipt. You do not state whether the Plan is qualified under Section 401(a) of the Internal Revenue Code ("Code").

Code Sections 402(a)(5) and 403(a)(4) provide, subject to certain restrictions and limitations, that a lump-sum distribution from a plan qualified under 401(a) which is transferred to an IRA within 60 days of receipt is not included in the employee's federal gross income in the year distributed.

Massachusetts General Laws Chapter 62, Section 2 defines Massachusetts gross income as federal gross income with certain modifications not here relevant.

Based on the foregoing, it is ruled that a retired employee who transfers assets from a plan qualified under Code Section 401(a) to an IRA will not realize any income from the transfer provided that no income is realized from the transfer for federal tax purposes.

Very truly yours,

/s/ L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

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LR 82-36