- 10 - 10-percent additional tax pursuant to section 72(t) for early distributions from qualified retirements plans.5 OPINION Generally, distributions from qualified retirement plans are includable in the distributee's income in the year of distribution as provided in section 72. Secs. 402(a)(1), 408(d)(1). An exception exists if the distribution proceeds are rolled over into an eligible retirement plan or an IRA within 60 days of the distribution. Secs. 402(a)(5), 408(d)(3). In the consolidated cases before us, respondent contends that petitioners' distribution proceeds were not rolled over into a qualified IRA because the purported trustee of the FAC IRA, Mr. Thomson, was not eligible to serve in that capacity. Respondent also asserts that petitioners did not acquire their interests in MDA's bus stop shelter program through an IRA but rather in their 5 Respondent concedes on brief that petitioners Gordon J. Schoof, Alice M. Johnson, William W. Agnew, and Daurine M. Baker are not liable for the 10-percent additional tax pursuant to sec. 72(t) for the distributions made to them during 1991 because they were age 59-1/2 or older at the time of the distributions. See sec. 72(t)(2)(A)(i). Because petitioner Joe O. Baker was also age 59-1/2 or older at the time of his distribution, we hold that he is not liable for the sec. 72(t) additional tax. In the notice of deficiency, there was no determination that petitioners Robert C. and Mary D. Borman were liable for the sec. 72(t) additional tax, but on brief, respondent made such an assertion. See sec. 6214(c).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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