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Respondent determined a deficiency in petitioner’s Federal
income tax for the taxable year 2002 of $11,625.10. The sole
issue for decision is whether petitioner is liable, under section
72(t), for the 10-percent additional tax on an early distribution
from petitioner’s qualified retirement plan. We conclude that he
is.
Background
Some of the facts have been stipulated, and they are so
found. We incorporate by reference the parties’ stipulation of
facts and accompanying exhibits.
At the time that the petition was filed, petitioner resided
in Macomb, Illinois.
Petitioner worked for Connor Company for 22 years. He
participated in the company’s Employees Savings and Profit
Sharing 401(k) Plan (401(k)) and retired in 2002 at the age of
54.2
During 2002, petitioner received two distributions from his
401(k) account. One of the distributions comprised just the
earnings on the money invested into his 401(k) account;
petitioner rolled over the entire amount, $110,686.68, into an
individual retirement account. This distribution is not at issue
in this case.
2 There is no dispute that this 401(k) plan is a qualified
retirement plan for Federal tax purposes. See secs. 401(a),
(k)(1), 4974(c)(1).
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Last modified: May 25, 2011