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v. Commissioner, 71 T.C. 367, 371 (1978), affd. without published
opinion 614 F.2d 1294 (2d Cir. 1979).
Second, section 72(t)(1) imposes an additional tax on
distributions from a “qualified retirement plan” equal to 10
percent of the portion of such amount that is includable in gross
income unless the distribution comes within one of several
statutory exceptions. For purposes of the 10-percent additional
tax, a qualified retirement plan includes both a 401(k) plan and
an individual retirement account or individual retirement annuity
(collectively, IRAs). See secs. 72(t)(1), 401(a), (k)(1),
4974(c)(1), (4), and (5).
Lastly, as relevant herein, the 10-percent additional tax
imposed on early distributions from qualified retirement plans
does not apply to distributions from “individual retirement
plans” used for higher education expenses of the taxpayer for the
taxable year. Sec. 72(t)(2)(E).4 An individual retirement plan
is defined as an individual retirement account or individual
retirement annuity (commonly referred to as IRAs). Sec.
4 Sec. 72(t)(2)(E) provides:
SEC. 72(t) 10-PERCENT ADDITIONAL TAX ON EARLY DISTRIBUTIONS
FROM QUALIFIED RETIREMENT PLANS.--
* * * * * * *
(E) Distributions From Individual Retirement
Plans For Higher Education Expenses.-- Distributions to
an individual from an individual retirement plan to the
extent such distributions do not exceed the qualified
higher education expenses * * * of the taxpayer for the
taxable year. * * *
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