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premature IRA 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. Furthermore, there is no
exception regarding in-kind distributions of IRA assets, and this
Court has repeatedly ruled that it is bound by the list of
statutory exceptions enumerated in section 72(t)(2). See, e.g.,
Arnold v. Commissioner, supra at 255; Schoof v. Commissioner, 110
T.C. 1, 11 (1998); Clark v. Commissioner, 101 T.C. 215, 224-225
(1993). As the legislative history of section 408(f), the
predecessor to section 72(t), explains, the purpose of the 10-
percent additional tax was to discourage early distributions from
retirement plans because “Premature distributions frustrate the
intention of saving for retirement”. S. Rept. 93-383, at 134
(1974), 1974-3 C.B. (Supp.) 80, 213. Petitioner is therefore
subject to the 10-percent additional tax under section 72(t) on
the entire amount of the IRA distribution.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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