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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.
As noted earlier, the parties stipulated that the school
system plan in which petitioner participated was a section 403(b)
plan. The plan, therefore, was not an individual retirement
plan. Petitioner, therefore, was not the beneficiary of an
individual retirement plan under section 7701(a)(37), which
defines an individual retirement plan as an individual retirement
account under section 408(a) or an individual retirement annuity
under section 408(b). The school system plan in which petitioner
participated was not a section 408(a) or (b) plan but a section
403(b) plan. A section 403(b) plan (such as the school system
plan) is altogether different from a section 408(a) or (b) plan.
In short, petitioner’s claim that the withdrawal at issue was
excluded from the 10-percent additional tax is incorrect. The
section 72(t)(2)(E) exclusion from the additional tax does not
apply to section 403(b) withdrawals.
In Uscinski v. Commissioner, T.C. Memo. 2005-124, this Court
stated that the 10-percent additional tax on early distributions
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