John and Michele McGovern - Page 6

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          an early distribution made before either petitioner attained the            
          age of 59� years.3  Compare sec. 4974(c)(1) with sec.                       
          7701(j)(1).4  Accordingly, the 10-percent additional tax applies            

               3  The total distribution from petitioner’s TSP was                    
          $27,880.04.  Of this amount, $15,000 was rolled over into an IRA,           
          and its tax treatment is not the subject of dispute in the                  
          present case.  See sec. 402(c)(1), (5).                                     
               4  Sec. 4974(c)(1) provides:                                           
                    SEC. 4974(c).  Qualified Retirement Plan.–-For                    
               purposes of this section, the term “qualified                          
               retirement plan” means--                                               
                         (1) a plan described in section 401(a) which                 
                    includes a trust exempt from tax under section                    
                    501(a), * * *                                                     
          Similarly, sec. 7701(j)(1) provides:                                        
                    SEC. 7701(j).  Tax Treatment of Federal Thrift                    
               Savings Fund.–-                                                        
                         (1) In general.–-For purposes of this title--                
                              (A) the Thrift Savings Fund shall be                    
                         treated as a trust described in section                      
                         401(a) which is exempt from taxation under                   
                         section 501(a);                                              
                              (B) any contribution to, or distribution                
                         from, the Thrift Savings Fund shall be                       
                         treated in the same manner as contributions                  
                         to or distributions from such a trust; and                   
                              (C) subject to section 401(k)(4)(B) and                 
                         any dollar limitation on the application of                  
                         section 402(e)(3), contributions to the                      
                         Thrift Savings Fund shall not be treated as                  
                         distributed or made available to an employee                 
                         or Member nor as a contribution made to the                  
                         Fund by an employee or Member merely because                 
                         the employee or Member has, under the                        

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