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section 151(c) for 1994, 1995, or 1996. Accordingly, Richard is
not a qualifying individual. Therefore, we conclude that Mr.
Meyer is not entitled a credit pursuant to section 21(a) for
1994, 1995, and 1996.
Additional Tax Pursuant to Section 72(t)
Section 72(t)(1) provides for a 10-percent additional tax on
the taxable amount of an early distribution from a qualified
retirement plan. Mr. Meyer conceded that he received the taxable
pension distributions of $1,333, $1,716, and $3,379 for 1994,
1995, and 1996, respectively; however, Mr. Meyer contends that an
exception provided by section 72(t)(2) applies.
Section 72(t)(2) provides exceptions to the 10-percent
additional tax for certain types of distributions. Section
72(t)(1) does not apply to distributions attributable to a
taxpayer’s being disabled within the meaning of section 72(m)(7).
Sec. 72(t)(2)(A)(iii). Section 72(m)(7) provides that an
individual is disabled if he is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected
to result in death or to be of long-continued and indefinite
duration. Primary consideration should be given to the nature
and severity of the impairment. Sec. 1.72-17A(f)(1), Income Tax
Regs. Whether or not the impairment constitutes a disability is
to be determined with reference to all the facts in the case.
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