- 5 -
(E) Distributions from individual
retirement plans for higher education
expenses.-- * * *
(F) Distributions from certain plans for
first home purchases.-- * * *
(3) Limitations.--
(A) Certain exceptions not to apply to
individual retirement plans.--Subparagraphs
(A)(v) and (C) of paragraph (2) shall not
apply to distributions from an individual
retirement plan.
For purposes of the foregoing statute, section 4974(c) includes
an IRA described in section 408(a) as a qualified retirement
plan.
II. Contentions of the Parties
It is respondent’s position that petitioners’ IRA
distribution falls within the terms specified in section 72(t)(1)
for imposition of the 10-percent additional tax and that none of
the exceptions enumerated in paragraph (2) apply on these facts.
Petitioners concede that the $20,000 was withdrawn from the IRA
of Ann E. Owens at a time she was only 58 years old and that the
amount was not rolled over into another retirement account or
plan. Additionally, petitioners have at no time contended that
any of the exceptions set forth in section 72(t)(2) are
applicable in their circumstances. Nonetheless, petitioners
apparently believe that they should be relieved of the 10-percent
additional tax on grounds of equity or fairness.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011