Meleca Vulic - Page 3

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          savings plan.  Further, respondent imposed an accuracy-related              
          penalty due to substantial understatement of tax.                           
               On September 18, 2002, petitioner filed a petition with the            
          Court disputing the notice of deficiency.                                   
                                       OPINION                                        
          Section 72(t) Additional Tax                                                
               Section 72(t) imposes a 10-percent additional tax on early             
          distributions from qualified retirement plans.  There were no               
          disputes about the timing of the distribution or whether Aramark            
          Corporation’s retirement savings plan is a “qualified retirement            
          plan” for purposes of section 72(t).  Rather, petitioner argues             
          that she was forced to withdraw the distribution because of                 
          economic hardship and to save her residence from foreclosure,               
          and, therefore, should not be liable for the additional tax                 
          imposed by respondent.                                                      
               The 10-percent additional tax does not apply to certain                
          distributions from qualified retirement plans.  See sec.                    
          72(t)(2).  Petitioner testified, and we have found, that she used           
          the distribution to refinance her house, to pay for her son’s               
          wedding, and to make payments on her credit cards.  The evidence            
          shows that none of the exceptions set forth in section 72(t)(2)             
          apply in this case.2  We conclude that the early distribution               

               2  The parties do not contend that sec. 7491(a) is                     
                                                             (continued...)           






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