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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evidence presented at trial established that the funds withdrawn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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Last modified: May 25, 2011