Charlotte Marie Scott - Page 8

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                    insurance described in section 213(d)(1)(D) with                  
                    respect to the individual * * * .                                 
                    (ii) Distributions After Reemployment.-–Clause (i)                
               shall not apply to any distribution made after the                     
               individual has been employed for at least 60 days after                
               the separation from employment to which clause (i)                     
                    (iii) Self-Employed Individuals.-–To the extent                   
               provided in regulations, a self-employed individual                    
               shall be treated as meeting the requirements of clause                 
               (i)(I) if, under Federal or State law, the individual                  
               would have received unemployment compensation but for                  
               the fact the individual was self-employed.                             
               Section 72(t)(2)(D) provides that the additional tax on                
          early distributions does not apply to “Distributions from an                
          individual retirement plan to an individual”.  (Emphasis added.)            
          An “individual retirement plan” is defined as:  “(A) an                     
          individual retirement account described in section 408(a), and              
          (B) an individual retirement annuity described in section                   
          408(b).”  Sec. 7701(a)(37) (an individual retirement plan is                
          commonly referred to as an IRA).                                            
               It is clear that the retirement plan established by Robicon,           
          from which petitioner withdrew the $1,168.39 distribution, was a            
          qualified retirement plan described in section 401(a), and,                 
          therefore, the exception contained in section 72(t)(2)(D) does              
          not apply.  Under the statutory language it is clear that section           
          72(t)(2)(D) does not apply to petitioner’s 401(k) qualified                 
          retirement plan distribution.                                               

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Last modified: May 25, 2011