- 8 -
retirement plan (as 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.
(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 periodic payments
(not less frequently than annually) made
for the life (or life expectancy) of the
employee or the joint lives (or joint
life expectancies) of such employee and
his designated beneficiary, * * *
Section 72(m)(7) provides:
(m) Special Rules Applicable to Employee Annuities
and Distributions Under Employee Plans.--
* * * * * * *
(7) Meaning of disabled.--For purposes of
this section, an individual shall be considered to
be disabled if he is unable to engage in any
substantial gainful activity by reason of any
medically determinable physical or mental
impairment which can be expected to result in
death or to be of long-continued and indefinite
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011