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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.
Section 4974(c) provides that the term "qualified retirement
plan" includes an "individual retirement account". Sec.
4974(c)(4).
The 10-percent additional tax, however, does not apply to
certain distributions. Section 72(t)(2) exempts distributions
from the additional tax if the distributions are made: (1) To an
employee age 59-1/2 or older; (2) to a beneficiary (or to 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; (6) as dividends paid with respect to corporate stock
described in section 404(k); (7) to an employee for medical care;
or (8) to an alternate payee pursuant to a qualified domestic
relations order. Section 72(t)(3)(A) provides generally that
exceptions (5), (7), and (8) do not apply to distributions from
an IRA.
Petitioner received an early distribution of $500 from an
IRA during the year at issue, which the Court has held is
includable in his gross income for that year. Petitioner was
born on August 29, 1945; therefore, petitioner did not reach the
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