- 5 - series of substantially equal periodic payments made for life; (5) to an employee after separation from service after attainment of age 55; or (6) as dividends paid with respect to stock of a corporation described in section 404(k). Petitioner contends that the additional tax under section 72(t) does not apply to distributions from profit sharing plans. We disagree. Petitioner received an early distribution from a qualified retirement plan, which, as stated above, includes a profit sharing plan such as the MIC Plan.6 See Hobson v. Commissioner, T.C. Memo. 1996-272; Grow v. Commissioner, T.C. Memo. 1995-594. Furthermore, petitioner has failed to show that any of the specifically enumerated exceptions in section 72(t)(2) apply to exempt his MIC Plan distribution from the additional tax. Therefore, we conclude that petitioner is liable for the additional tax imposed by section 72(t)(1). In the alternative, petitioner argues that he rolled over his MIC Plan distribution into the apartment complex investment, which should be considered an eligible retirement plan so as to permit tax free treatment. Petitioner’s apartment complex investment, however, is not an eligible retirement plan. See 6 Because neither party disputes the issue, we assume the profit sharing plan constitutes a “qualified trust” within the meaning of sec. 401(a), which is exempt from tax under sec. 501(a).Page: Previous 1 2 3 4 5 6 7 8 Next
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