Frederick W. Haas and Donna S. Haas - Page 4

                                        - 3 -                                         
          exposure to known liver toxins.”                                            
               In 2002, IT went bankrupt and petitioner's employment was              
          terminated.  After IT went into bankruptcy, petitioner could not            
          find employment similar to that which he had.  He attended North            
          Georgia College and State University, became qualified as a high            
          school teacher, and became a teacher in August 2003.                        
               During 2001, petitioner withdrew $56,250 from a section                
          401(k) retirement plan (the distribution).  At that time he had             
          not reached age 59-1/2.  Petitioners reported the distribution on           
          their joint 2001 Federal income tax return, but did not report              
          any additional tax under section 72(t).  Respondent determined              
          that the 10-percent additional tax was due.                                 
               Section 72(t) provides:                                                
                    SEC. 72(t).  10-Percent Additional Tax on Early                   
               Distributions from Qualified Retirement Plans.--                       
                           (1) Imposition of additional tax.--If any                  
                    taxpayer receives any amount from a qualified                     
                    retirement plan * * *  the taxpayer’s tax under this              
                    chapter for the taxable year in which such amount is              
                    received shall be increased by an amount equal to 10              
                    percent of the portion of such amount which is                    
                    includible in gross income.                                       
                           (2) Subsection not to apply to certain                     
                    distributions.--Except as provided in paragraphs (3)              
                    and (4), paragraph (1) shall not apply to any of the              
                    following distributions:                                          

Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011