Robert J. Dwyer and Catherine Dwyer - Page 5

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          other, giving petitioner no relief from his condition and causing           
          him to be very disoriented.  Subsequently, petitioner consulted a           
          second physician, Dr. Gardner, who prescribed only Pamelor,                 
          which, in about six weeks' time, cleared up petitioner's                    
          condition.  Petitioner continued to see Dr. Gardner for about two           
          years, but discontinued seeing him after that time because he               
          could no longer afford the consultation fees.  Petitioner is no             
          longer on medication.  Petitioner regularly exercises to avoid              
          "putting myself in positions any longer where I can have this               
          kind of a setback."                                                         
               Respondent determined an additional tax of $20,880 on the              
          $208,802 premature distribution from petitioner's IRA.                      
               The legislative history accompanying the enactment of former           
          section 408(f) explains the purpose of what is now section 72(t),           
          as follows:  Premature distributions from IRAs frustrate the                
          intention of saving for retirement, and section 72(t) discourages           
          this from happening.  S. Rept. 93-383 at 134 (1974), 1974-3 C.B.            
          (Supp.) 80, 213.  Thus, in the event of a distribution to an                
          individual from his or her IRA before such individual attains age           
          59-1/2, the individual's tax on the amount distributed is                   
          increased by 10 percent of the total distribution.  H. Conf.                
          Rept. 93-1280, at 339 (1974), 1974-3 C.B. 415, 500.                         
               Section 72(t)(1) and (2) provides in relevant part:                    

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