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page of an IRA application, signed by petitioner and dated
October 21, 1994, which purported to show a deposit of $28,406.99
into a new IRA (i.e., the IRA into which petitioner contends he
deposited the subject $500). Petitioner contends that he
deposited the subject $500 into this IRA prior to the date of the
application (although he did not attempt to specify how many days
or weeks prior thereto); however, the Court is not convinced.
Petitioner failed to produce any documentary evidence of either
the date he received the $500 distribution or of the date he
deposited the same into a different IRA.
On this record, the Court holds that petitioner failed to
make a section 402(c)(1) rollover of the $500 distribution,
either to an IRA or any other type of eligible retirement plan.
Consequently, the Court holds that the $500 distribution from the
IRA was not transferred to an eligible retirement plan as
required by section 402(c)(1)(B) in order for such distribution
to be excluded from petitioner's gross income. Respondent,
therefore, is sustained on this issue.
The final issue is whether petitioner is liable for the 10-
percent additional tax, under section 72(t), on a premature
distribution from an IRA. Section 72(t) provides for a 10-
percent additional tax on early distributions from qualified
retirement plans. Paragraph (1) provides in relevant part:
(1) Imposition of additional tax.--If any taxpayer
receives any amount from a qualified retirement plan (as
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Last modified: May 25, 2011