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section 408(a); (2) an individual retirement annuity described in
section 408(b) (other than an endowment contract); (3) a
qualified trust; and (4) an annuity plan described in section
403(a). Sec. 402(a)(5)(E)(iv).
Petitioner's investment of the distribution into a personal
residence does not constitute a transfer to an "eligible
retirement plan" within the meaning of section 402(a)(5)(A)(ii).
See Harris V. Commissioner, T.C. Memo. 1994-22; Luke v.
Commissioner, T.C. Memo. 1993-409. It is a well-established
principle that "exemptions from taxation are not to be implied;
they must be unambiguously proved." United States v. Wells Fargo
Bank, 485 U.S. 351, 354 (1988). Section 402(a)(5) does not apply
to exclude the distribution from gross income, and we must apply
the general rule of section 402(a).
As discussed infra, it appears from petitioner's statements
from the savings plan that the Form 1099-R excluded the
proportionate share of petitioner's investment in the contract.
Accordingly, we hold that the taxable portion of the distribution
was $25,709, and that amount was taxable to petitioners during
1991. We, therefore, sustain respondent's determination on this
issue.
Section 72(t) Additional Tax
Section 72(t)(1) imposes an additional tax on an amount
received from a qualified retirement plan equal to 10 percent of
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