- 6 -
expenses for the taxpayer or the taxpayer’s spouse to the extent
such distributions do not exceed the taxpayer’s qualified higher
education expenses for the taxable year, sec. 72(t)(2)(E), (7).
A. Health Insurance Premiums
A distribution qualifies under section 72(t)(2)(D) if it was
made from an individual retirement plan to an individual after
separation from employment: (1) If such individual has received
unemployment compensation for 12 consecutive weeks under any
Federal or State unemployment compensation law by reason of such
separation, sec. 72(t)(2)(D)(i)(I); (2) if such distribution was
made during any taxable year during which such unemployment
compensation is paid or the succeeding taxable year, sec.
72(t)(2)(D)(i)(II); and (3) to the extent such distribution does
not exceed the amount paid during the taxable year for insurance,
sec. 72(t)(2)(D)(i)(III). A self-employed individual shall be
treated as having satisfied the requirement of section
72(t)(2)(D)(i)(I) if, under Federal or State law, the individual
would have received unemployment compensation but for the fact
that the individual was self-employed. Sec. 72(t)(2)(D)(iii).
Respondent does not dispute that petitioners incurred health
insurance expenses of $1,800. Respondent contends, however, that
the exception under section 72(t)(2)(D) does not apply because
Mr. El-Bibany does not satisfy the statutory requirements. We
agree.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011