- 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
Last modified: May 25, 2011