- NEXTRECORD -
We turn next to respondent's determination that petitioner
is liable for the 10-percent additional tax imposed by section
72(t).
Section 72(t) provides for a 10-percent additional tax on
early distributions from qualified retirement plans. Paragraph
(1), which imposes the tax, provides in relevant part as follows:
(1) Imposition of additional tax.--If any taxpayer
receives any amount from a qualified retirement plan (as
defined in section 4974(c)), the taxpayer's tax under this
chapter for the taxable year in which such amount is
received shall be increased by an amount equal to 10 percent
of the portion of such amount which is includible in gross
income.
As relevant herein, section 4974(c) defines a qualified
employer plan as "an annuity contract described in section
403(b)". Sec. 4974(c)(3).
The 10-percent additional tax does not apply to certain
distributions. Sec. 72(t)(2). For example, section 72(t)(2)
provides that the 10-percent additional tax does not apply to
distributions that are: (1) Made on or after the date on which
the taxpayer attains age 59-1/2; (2) made to a beneficiary (or to
the estate of the taxpayer) on or after the death of the
taxpayer; (3) attributable to the taxpayer's being disabled; or
(4) made to a taxpayer after separation from service after
attainment of age 55. Sec. 72(t)(2)(A)(i), (ii), (iii), and (v).
Because none of the exceptions of section 72(t)(2) applies to
relieve petitioner of the additional tax, we sustain respondent's
determination that petitioner is liable for such tax.
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Last modified: May 25, 2011