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Revenue Code in effect for the year in issue, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioner’s Federal
income tax for the taxable year 2001 of $3,036.80. The sole
issue for decision is whether petitioner is liable under section
72(t) for the 10-percent additional tax on an early distribution
from a section 401(k) qualified retirement plan.
Background
Some of the facts have been stipulated, and they are so
found. The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time of filing his
petition, petitioner resided in Tucson, Arizona.
Petitioner was employed as an accountant by Deloitte &
Touche (Deloitte), an accounting firm, where he participated in
the Deloitte section 401(k) qualified retirement plan (401(k)
plan). Petitioner resigned from Deloitte in September 1999, to
begin full-time studies in a Ph.D. program at the University of
Arizona; he graduated in May 2004. In 2001, petitioner received
a distribution of $30,368.86 from the 401(k) plan. He used the
funds from the distribution to pay school expenses and to
purchase his first home. At the time of the distribution
petitioner had not reached 59� years of age.1
1 There are no facts in this record indicating that any of
the other exceptions apply as set forth in sec. 72(t)(2)(A).
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