Christine L. Gibbons - Page 7

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          from qualified plans (used for higher education purposes) applies           
          only as to early distributions from an individual retirement                
          account or an individual retirement annuity, collectively                   
          referred to as IRAs, as described in section 408(a) or (b).  The            
          school system plan in which petitioner participated was not an              
          IRA; therefore, the early withdrawals from that plan, even if               
          used for higher education expenses, are not excluded from the               
          section 72(t) additional tax.3                                              
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
                                             Decision will be entered                 
                                        for respondent.                               















               3Because the Court holds that the withdrawal by petitioner,            
          as a matter of law, was not subject to the exemption from the               
          sec. 72(t) additional tax, the Court need not decide whether the            
          evidence presented at trial established that the funds withdrawn            
          from the pension plan were in fact used for higher educational              
          expenses.                                                                   




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