- 2 -
Respondent determined a deficiency in petitioners’ 1999
Federal income tax of $1,288. The issue for decision is whether
the 10-percent additional tax under section 72(t)(1) applies to
the early distribution from petitioners’ Federal Employees’
Thrift Savings Plan.
Some of the facts have been stipulated, and they are so
found. The stipulation of facts and attached exhibits are
incorporated herein by this reference. At the time of filing the
petition, petitioners resided at Scranton, Pennsylvania.
Background
During the year in issue, John McGovern (petitioner) was a
full-time student at Villanova University School of Law. Also
during the year in issue, petitioner received a lump-sum
distribution of $27,880.04 from his Federal Employees’ Thrift
Savings Plan (TSP) and deposited that amount into a personal
checking account. Petitioner rolled over $15,000 of that amount
into an individual retirement account (IRA).1 Petitioner used
the remaining $12,880.04 to pay tuition and education fees to
Villanova University during the 1999 taxable year. Neither
petitioner attained the age of 59� years during the 1999 taxable
year.
1 Respondent did not determine a 10-percent additional tax
as to this amount.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011