I was participating in an unqualified funded pension (deferred income) plan wih a company that I separated from in November of 2002. Monies had gone into the fund (basically pension fund made of mutual funds managed by a large investment house) pre federal and state tax, but FICA and FUTA were paid at the time income was earned.

At that time I quit the company, I was forced to either take a lump sum of the monies available on that day or to leave it in the fund with a lot of restrictions. If it was left in the fund, it was required that I accept unequal distributions (depending on the value of mutual fund at distribution time) once a year over a period of 8 years. With the distribution option, I had no control over the investment nor access to any funds in the account other than what was distributed.

I opted for the distribution over a period of 8 years and received my first distribution in Novemeber 2003.

My tax question is whether I have to apply constructive receipt (on value of fund at separation from company in Nov 2002) or do I just claim the income when received each year?

Zip Code: capitalstockcash2@yahoo.com