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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)
applies.
(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