Timothy W. and Suzanne M. Coffield - Page 5

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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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