4
distributee; namely, where a distribution is paid to the
distributee, and the distributee transfers the entire amount of
the distribution to an IRA or an individual retirement annuity
within 60 days of receipt.
Section 72(t)(1) provides for a 10-percent additional tax on
distributions from qualified retirement plans. Section 72(t)(2)
excludes qualified retirement plan distributions from the 10-
percent additional tax if the distributions are: (1) Made on or
after the date on which the employee attains the age of 59-1/2;
(2) made to a beneficiary (or to the estate of the employee) on
or after the death of the employee; (3) attributable to the
employee's being disabled within the meaning of section 72(m)(7);
(4) part of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life
expectancy) of the employee or joint lives (or joint life
expectancies) of such employee and his designated beneficiary;
(5) made to an employee after separation from service after
attainment of age 55;3 or (6) dividends paid with respect to
stock of a corporation which are described in section 404(k). A
limited exclusion is also available for distributions made to an
employee for medical care expenses. See sec. 72(t)(2)(B).
3 This provision, codified at sec. 72(t)(2)(A)(v), is not
applicable to premature IRA distributions. See sec. 72(t)(3)(A).
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011