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7701(a)(37). Retirement plans qualified under section 401(a) and
(k), however, are not included in the definition of “individual
retirement plan” under section 7701(a)(37).
Clearly, Congress intended this exception 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.
In the present case, Mrs. Domanico’s 401(k) plan is a
qualified retirement plan, and distributions therefrom are
subject to the 10-percent additional tax under section 72(t)(1)
absent an applicable statutory exception.5 Although Mrs.
5 None of the exceptions under sec. 72(t)(2)(A) (e.g.,
distributions (1) made after the employee attains age 59 �, (2)
(continued...)
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