- 26 -
is a qualified plan under section 401(a). Additionally, the
account from which petitioner received his distribution in 1990
was a valid IRA under section 408(a). Accordingly, absent an
applicable exception, the additional tax under section 72(t)(1)
applies to the distributions received by petitioners in both 1989
and 1990.
By virtue of paragraph (2)(A)(iii) of section 72(t), the 10-
percent additional tax does not apply, inter alia, to
distributions attributable to the taxpayer's being disabled
(within the meaning of section 72(m)(7)).
We have already decided that petitioner was disabled within
the meaning of section 72(m)(7) when he received the Transfer
Refund. Accordingly, petitioners are not liable for the
additional tax imposed by section 72(t) for either of the taxable
years in issue.
IV. Excise Tax Issues
We turn next to respondent's excise tax determinations. We
begin with section 4973.
Section 4973
Section 4973(a) imposes a 6-percent excise tax on excess
contributions to an IRA. As relevant herein, an "excess
contribution" is the amount in excess of the amount allowable as
a deduction under section 219 (computed without regard to section
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