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Respondent determined a deficiency in petitioners’ Federal
income tax of $1,848 for the taxable year 2000.
The issue for decision is whether petitioners are liable for
a section 72(t) additional tax on an early distribution from a
qualified retirement plan.1
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. Petitioners resided in
Columbus, Ohio, on the date the petition was filed in this case.
There are no disputed facts in this case. Petitioner wife
(petitioner) withdrew $17,222.69 from a qualified retirement plan
in 2000. Petitioner withdrew the funds in order to pay for
certain medical treatments which she started in 2000, but the
payments for these services were made primarily in 2001.2 On
petitioners’ joint Federal income tax return for 2000,
petitioners included in income the $17,222.69 distribution, but
they did not report liability for the section 72(t) additional
tax. Although petitioners itemized their deductions, they did
not claim a deduction for medical expenses. In the notice of
1Petitioners concede liability for the self-employment
income tax.
2On petitioners’ joint Federal income tax return for 2001,
petitioners claimed an itemized deduction of $8,724.13 for
medical expenses totaling $16,252.75, after application of the
7.5-percent limitation under sec. 213(a).
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