- 3 -
$20,246.123 as part of a $104,529.30 payment towards the purchase
of a 28-unit apartment complex, which petitioner contends is his
retirement investment plan (apartment complex investment). At
the time of these events, petitioner was 37 years of age and not
disabled.
Petitioner timely filed a Form 1040, U.S. Individual Income
Tax Return, for 1999. On his return, petitioner did not include
the 10-percent additional tax imposed by section 72(t) on line
53, Tax on IRAs, other retirement plans, and MSAs, on the
$25,307.65 distribution he received from the MIC Plan. In the
notice of deficiency, respondent determined that petitioner was
liable for a “premature distributions tax from a qualified
retirement plan” in the amount of $2,531.
Petitioner timely filed a petition with the Court disputing
the determined deficiency. Paragraph 4 of the petition states as
follows:
I disagree with the laws that disallow real estate
investing as an acceptable retirement plan in which to
roll over “pension” funds. I believe R.E. Investment
to be as much (or more) legitament [sic] of a
retirement plan than IRAs, mutual fund’s, etc... I
have the right to invest my retirement money as
prudently as possible.
3 Net proceeds equals gross distribution less Federal
income tax withheld: $20,246.12 = 25,307.65 - 5,061.53.
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Last modified: May 25, 2011