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Petitioner included the distribution in his income tax
return for 1994. Petitioner had not attained the age of 59 1/2
years when he received the distribution with respect to his
pension from Executive Life. Respondent determined that
petitioner is liable for the 10-percent tax on early
distributions from qualified retirement plans imposed by section
72(t). Petitioner asserts that the additional tax should not
apply because the withdrawal was encouraged by the Superior Court
and was essentially involuntary.
Additional Tax on Early Withdrawals Under Section 72(t)
Under section 72(t), a 10-percent tax is imposed on any
distribution from a qualified retirement plan if the distribution
fails to satisfy one of the exceptions specifically provided in
section 72(t)(2).2 Petitioner does not assert that any statutory
2 Sec. 72(t)(2) states:
(2) Subsection not to apply to certain
distributions.--Except as provided in paragraphs (3)
and (4), paragraph (1) shall not apply to any of the
following distributions:
(A) In general.--Distributions which are--
(i) made on or after the date on which the
employee attains age 59 1/2,
(ii) made to a beneficiary (or to the estate
of the employee) on or after the death of the
employee,
(iii) attributable to the employee's being
disabled within the meaning of subsection (m)(7),
(iv) part of a series of substantially equal
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