Bernadette Williams - Page 6

                                        - 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