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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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Last modified: May 25, 2011