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premature distributions from the two qualified plans were exempt
from the additional tax of section 72(t) because there are no
competing claims from which a determination of priorities has to
be made.
Petitioner also contends that the limited exceptions to the
section 72(t) additional tax violate his constitutional right of
equal protection. Specifically, petitioner argues that the death
and disability hardship exceptions to section 72(t) are "under-
inclusive, denying exceptions for general hardship circumstances,
thereby treating similarly situated persons in a substantially
different manner." The "hardship exceptions" in section 72(t)
for death and disability do not involve either a fundamental
interest or a suspect classification. Accordingly, the proper
level for review is the rational basis test--i.e., whether the
classification bears a reasonable relationship to some legitimate
government purpose. The legislative history of section 72
provides that the section was enacted to prevent the diversion of
retirement savings for nonretirement purposes and to recapture a
measure of the tax benefits provided by the deferral of income
tax through retirement plans. At the same time, Congress
recognized that it was appropriate to provide, under limited
circumstances, an exemption from the tax for certain withdrawals
on account of specified hardships. H. Rept. 99-426 (1985), 1986-
3 C.B. (Vol.2) 1, 727-729; S. Rept. 99-313 (1985), 1986-3 C.B.
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