- 5 -
distributions under section 72(t). Plotkin v. Commissioner,
T.C. Memo. 2001-71.
The additional tax imposed by section 72(t) does not apply
to certain distributions from qualified retirement plans. For
example and most common, distributions that are made on or after
the date on which the taxpayer attains the age of 59 � are not
subject to the additional tax. Sec. 72(t)(2)(A)(i). Petitioner
did not attain the age of 59 � as of the close of 2000, and she
does not claim that she did. Instead, she argues that section
72(t) is not applicable to the distribution because she was
disabled at the time. She further suggests that the section
72(t) additional tax should not be imposed because she was
prohibited from making loan repayments to her retirement plan
by the terms of her bankruptcy plan.
Among other exceptions, none of which applies here, section
72(t)(2)(A)(iii) provides an exception for distributions
“attributable to the employee’s being disabled within the meaning
of subsection (m)(7)”. Section 72(m)(7) defines the term
“disabled” as follows:
(7) Meaning of disabled.--For purposes of this section,
an individual shall be considered to be disabled if he
is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or
mental impairment which can be expected to result in
death or to be of long-continued and indefinite
duration. An individual shall not be considered to be
disabled unless he furnishes proof of the existence
thereof in such form and manner as the Secretary may
require.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011