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plan loans does not exceed the lesser of: (i) $50,000, or (ii)
the greater of $10,000 or half of the participant's vested
accrued benefit under the plan; and (2) the loan, by its terms,
requires repayment within 5 years. Sec. 72(p)(2)(A) and (B).
Section 72(p)(2)(C) was added by the Tax Reform Act of 1986,
Pub. L. 99-514, sec. 1134(b), 100 Stat. 2085, 2484, and limits
the exception in section 72(p)(2) to those loans that are
required to be amortized in substantially level installments paid
at least quarterly. This provision applies to loans made,
renewed, renegotiated, modified, or extended after December 31,
1986. Id. Section 72(t)(1) imposes an additional tax on an
amount received from a qualified retirement plan equal to 10
percent of the portion of such amount that is includable in gross
income. Section 72(t)(2) exempts distributions from the
additional tax if the distributions are made, inter alia: (1) To
an employee age 59� or older; (2) to a beneficiary (or the estate
of the employee) on or after the death of the employee; (3) on
account of disability; (4) as part of a series of substantially
equal periodic payments made for life; (5) to an employee after
separation from service after attainment of age 55; or (6) as
dividends paid with respect to corporate stock described in
section 404(k).
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