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included in the definition of “individual retirement plan” under
section 7701(a)(37).
Clearly, Congress intended the exception of section
72(t)(2)(E) to apply only to distributions from “individual
retirement plans”; i.e., IRAs, and not to all qualified
retirement plans. See secs. 4974(c)(4) and (5) and 7701(a)(37);
Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 203(a), 111
Stat. 809. This is evident in the report of the Committee on the
Budget, which provides:
Penalty free IRA withdrawals for education
expenses--The bill provides that individuals may make
penalty-free withdrawals from their IRAs to pay for the
undergraduate and graduate higher education expenses of
themselves, their spouses, their children and
grandchildren or the children or grandchildren of their
spouses. [Emphasis added.]
H. Rept. 105-148, at 288-289 (1997), 1997-4 C.B. (Vol. 1) 319,
610-611. The report of the Committee on the Budget specifically
provides that only withdrawals from IRAs that are used for higher
education expenses will qualify as withdrawals excepted from the
10-percent additional tax. Id. No other types of qualified
plans are provided this exemption from the section 72(t)
additional tax.
A copy of the plan of the Employees Retirement System of
Texas was offered into evidence. The explanatory information
about the system states expressly: “Your retirement program is a
defined benefit plan. It is qualified under Section 401(a) of
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