Linda L. Domanico and Anthony M. Domanico - Page 7

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               exceptions to the 10% penalty also apply when early                    
               distributions are made from an IRA.                                    
                         *    *    *    *    *    *    *                              
                    Education Expenses.  The 10% penalty does not                     
               apply if the individual uses the IRA money to pay for                  
               “qualified higher education expenses” for the                          
               individual, the individual’s spouse, child, or                         
               grandchild of the individual or the individual’s                       
               spouse.  Qualified expenses included [sic] tuition at a                
               post-secondary educational institution, books, fees,                   
               supplies and equipment (Code Sec. 72(t)(2)(E)).                        
               [Emphasis added.]                                                      
          Therefore, in petitioners’ view, because distributions from an              
          IRA and a qualified plan; i.e., a 401(k) plan, are treated the              
          same in some instances for purposes of the 10-percent penalty and           
          because a distribution from an IRA that is used for higher                  
          education expenses is exempt from the 10-percent penalty, a                 
          distribution from a qualified plan that is used for higher                  
          education expenses should also be exempt from the 10-percent                
          penalty.  Moreover, according to petitioners, a one-time                    
          distribution should cover expenses incurred over a number of                
          years because paragraph 2179 of the Master Tax Guide does not               
          state that the funds must be used in the same calendar year that            
          the distribution is received.  As discussed below, we disagree              
          with petitioners’ contention.                                               
               First, it is well settled that the authoritative sources of            
          Federal tax law are the statutes, regulations, and judicial                 
          decisions and not guides such as the Master Tax Guide that are              
          published by private commercial publishers.  See, e.g., Zimmerman           

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