Frederick W. Haas and Donna S. Haas - Page 6

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          should avoid direct exposure to known liver toxins, he could                
          participate in site surveys with recommended protection, and his            
          physical examination results were within normal limits.                     
               Petitioner points to communications with IT personnel in               
          March and April of 2000 where it was determined that he should              
          not go on certain projects.  But also during 2000, he was still             
          going out on projects.  In 2002, when IT went into bankruptcy and           
          petitioner became unemployed, we cannot say his unemployment was            
          due to a disability within the meaning of section 72(m)(7).                 
          Certainly none of his doctors stated that he was disabled.  It              
          may well be that he had medical problems, but we are not                    
          convinced that these problems could be expected to result in                
          death or to be of a long-continued duration to keep him from                
          engaging in his customary or any comparable substantial gainful             
              Petitioners may have been subject to financial hardship                 
         during 2001; there is, however, no exception under section 72(t)             
         for financial hardship.  This principle has been applied                     
         consistently in cases dealing with premature individual                      
         retirement account distributions.  See Arnold v. Commissioner,               
         111 T.C. 250, 255 (1998); Gallagher v. Commissioner, T.C. Memo.              
         2001-34; Deal v. Commissioner, T.C. Memo. 1999-352; Pulliam v.               
         Commissioner, T.C. Memo. 1996-354.  As the legislative history of            
         section 408(f), the predecessor to section 72(t), explains, the              

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