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of constructive receipt as set forth in the Code and the
regulations, since it is Federal law that designates which of
those interests and rights is taxed. See Walter v. United
States, 148 F.3d 1027, 1029 (8th Cir. 1998) (“We agree that the
law of negotiable instruments provides a useful backdrop, but it
cannot trump the doctrine of constructive receipt as developed in
the Internal Revenue Code and its implementing Treasury
Regulations.”).
Section 72(t)(1) provides that a 10-percent additional tax
applies to any amount received from a qualified retirement plan,
subject to exceptions enumerated in section 72(t)(2).5 In the
5Sec. 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
(as defined in section 4974(c)), 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:
(A) In general.--Distributions which are--
(i) made on or after the date on which
the employee attains age 59 1/2,
(ii) made to a beneficiary (or to the
estate of the employee) on or after the death
(continued...)
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Last modified: May 25, 2011