- 10 - 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011